Annual report pursuant to Section 13 and 15(d)

Marketable Securities

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Marketable Securities
12 Months Ended
Apr. 30, 2011
Marketable Securities [Abstract]  
Marketable Securities
 
5.   Marketable Securities
 
As of April 30, 2011 marketable securities consisted of the following:
 
                         
          Available-for-
       
    Trading     Sale(2)     Total  
    (In thousands)  
 
Mutual funds(1)
  $ 71,363     $     $ 71,363  
Corporate bonds
          40,444       40,444  
U.S. Treasury and agency securities
          9,424       9,424  
Commercial paper
          1,000       1,000  
                         
Total
    71,363       50,868       122,231  
Less: current portion of marketable securities
    (5,081 )     (15,787 )     (20,868 )
                         
Non-current marketable securities
  $ 66,282     $ 35,081     $ 101,363  
                         
 
As of April 30, 2010 marketable securities consisted of the following:
 
                         
          Available-for-
       
    Trading     Sale     Total  
    (In thousands)  
 
Mutual funds(1)
  $ 69,019     $     $ 69,019  
Auction rate securities
    7,455             7,455  
Auction rate securities put option
    745             745  
                         
Total
    77,219             77,219  
Less: current portion of marketable securities
    (4,114 )           (4,114 )
                         
Non-current marketable securities
  $ 73,105     $     $ 73,105  
                         
 
 
(1) These investments are held in trust for settlement of the Company’s obligations under certain of its deferred compensation plans with $5.1 million and $4.1 million classified as current assets as of April 30, 2011 and 2010, respectively (see Note 7).
 
(2) These securities represent excess cash invested, under our investment policy, with a professional money manager.
 
As of April 30, 2011, amortized cost and fair values of marketable securities classified as available-for-sale investments were as follows:
 
                                 
    April 30, 2011  
          Gross
    Gross
       
    Amortized
    Unrealized
    Unrealized
    Estimated
 
    Cost     Gains     Losses     Fair Value  
    (In thousands)  
 
Corporate bonds
  $ 40,369     $ 107     $ (32 )   $ 40,444  
U.S. Treasury and agency securities
    9,427       10       (13 )     9,424  
Commercial paper
    1,000                   1,000  
                                 
Total
  $ 50,796     $ 117     $ (45 )   $ 50,868  
                                 
 
Investments in marketable securities are made based on the Company’s investment policy, which restricts the types of investments that can be made. As of April 30, 2011 and 2010, the Company’s investments associated with cash equivalents, including restricted cash consist of money market funds for which market prices are readily available. As of April 30, 2011 and 2010, the Company’s investments in marketable securities, consisting of mutual funds, were classified as trading, for which market prices are readily available. As of April 30, 2011, marketable securities classified as available-for-sale consist of corporate bonds, U.S. Treasury and agency securities and commercial paper, with maturities ranging from one month to three years, for which market prices for similar assets are readily available. Also classified as trading were ARS, reflected at fair value, as of April 30, 2010, which were redeemed at full value during fiscal 2011.
 
As of April 30, 2011 and 2010, the Company’s marketable securities included $71.4 million (net of gross unrealized gains and losses of $6.8 million and $0.1 million, respectively) and $69.0 million (net of gross unrealized gains and losses of $3.5 million and $1.5 million, respectively), respectively, held in trust for settlement of the Company’s obligations under certain of its deferred compensation plans, of which $66.3 million and $64.9 million, respectively, are classified as non-current. The Company’s obligations for which these assets were held in trust totaled $72.1 million and $69.0 million as of April 30, 2011 and 2010, respectively.
 
The following table represents the Company’s fair value hierarchy for financial assets measured at fair value on a recurring basis:
 
                                 
    April 30, 2011  
    Total     Level 1     Level 2     Level 3  
    (In thousands)  
 
Cash equivalents, including restricted cash
  $ 120,840     $ 120,840     $     $  
Mutual funds
    71,363       71,363              
Corporate bonds
    40,444             40,444        
U.S. Treasury and agency securities
    9,424             9,424        
Commercial paper
    1,000             1,000        
                                 
Total
  $ 243,071     $ 192,203     $ 50,868     $  
                                 
 
                                 
    April 30, 2010  
    Total     Level 1     Level 2     Level 3  
    (In thousands)  
 
Cash equivalents
  $ 148,238     $ 148,238     $     $  
Mutual funds
    69,019       69,019              
Auction rate securities
    7,455                   7,455  
Auction rate securities put option
    745                   745  
                                 
Total
  $ 225,457     $ 217,257     $     $ 8,200  
                                 
 
The following table presents the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the periods indicated:
 
                 
    April 30,  
Auction Rate Securities   2011     2010  
    (In thousands)  
 
Balance, beginning of year
  $ 8,200     $ 12,425  
Auction rate securities put option
    (745 )     (351 )
Realized gain included in operations
    745        
Unrealized gain included in operations
          351  
Sale of securities
    (8,200 )     (4,225 )
                 
Balance, end of year
  $     $ 8,200