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MARKETABLE SECURITIES | 3 Months Ended
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Aug. 31, 2012
MARKETABLE SECURITIES | NOTE 6 — MARKETABLE SECURITIES The following tables summarize marketable securities held at August 31, 2012 and May 31, 2012 by asset type:
|  | Available-For-Sale Securities |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value (Net Carrying Amount) |
August 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks — foreign |  | $ | 1,321 |  |  | $ | 234 |  |  | $ | (1 | ) |  | $ | 1,554 |
Stocks — domestic |  |  | 26,657 |  |  |  | 1,877 |  |  |  | (922 | ) |  |  | 27,612 |
Mutual funds — foreign |  |  | 19,053 |  |  |  | 1,167 |  |  |  | (5 | ) |  |  | 20,215 |
Mutual funds — domestic |  |  | 39,685 |  |  |  | 165 |  |  |  | (40 | ) |  |  | 39,810 |
Total equity securities |  |  | 86,716 |  |  |  | 3,443 |  |  |  | (968 | ) |  |  | 89,191 |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and other government |  |  | 20,641 |  |  |  | 484 |  |  |  | (17 | ) |  |  | 21,108 |
Kemrock convertible bonds |  |  | 14,273 |  |  |  | — |  |  |  | — |  |  |  | 14,273 |
Corporate bonds |  |  | 1,832 |  |  |  | 268 |  |  |  | — |  |  |  | 2,100 |
Foreign bonds |  |  | 38 |  |  |  | 3 |  |  |  | — |  |  |  | 41 |
Mortgage-backed securities |  |  | 180 |  |  |  | 65 |  |  |  | (1 | ) |  |  | 244 |
Total fixed maturity securities |  |  | 36,964 |  |  |  | 820 |  |  |  | (18 | ) |  |  | 37,766 |
Total |  | $ | 123,680 |  |  | $ | 4,263 |  |  | $ | (986 | ) |  | $ | 126,957 |
|  | Available-For-Sale Securities |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value (Net Carrying Amount) |
May 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks — foreign |  | $ | 1,016 |  |  | $ | 79 |  |  | $ | — |  |  | $ | 1,095 |
Stocks — domestic |  |  | 24,380 |  |  |  | 2,776 |  |  |  | (1,046 | ) |  |  | 26,110 |
Mutual funds — foreign |  |  | 17,489 |  |  |  | 521 |  |  |  | (936 | ) |  |  | 17,074 |
Mutual funds — domestic |  |  | 39,246 |  |  |  | 1,114 |  |  |  | (1,077 | ) |  |  | 39,283 |
Total equity securities |  |  | 82,131 |  |  |  | 4,490 |  |  |  | (3,059 | ) |  |  | 83,562 |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and other government |  |  | 19,347 |  |  |  | 530 |  |  |  | (12 | ) |  |  | 19,865 |
Kemrock convertible bonds |  |  | 13,670 |  |  |  | — |  |  |  | — |  |  |  | 13,670 |
Coporate bonds |  |  | 2,305 |  |  |  | 349 |  |  |  | (5 | ) |  |  | 2,649 |
Foreign bonds |  |  | 38 |  |  |  | 1 |  |  |  | — |  |  |  | 39 |
Mortgage-backed securities |  |  | 241 |  |  |  | 105 |  |  |  | (2 | ) |  |  | 344 |
Total fixed maturity securities |  |  | 35,601 |  |  |  | 985 |  |  |  | (19 | ) |  |  | 36,567 |
Total |  | $ | 117,732 |  |  | $ | 5,475 |  |  | $ | (3,078 | ) |  | $ | 120,129 |
Marketable securities, included in other current and long-term assets, totaling $39.1 million and $87.9 million at August 31, 2012, respectively, and $30.5 million and $89.6 million at May 31, 2012, respectively, are composed of available-for-sale securities and are reported at fair value. In April 2012, we invested $22.7 million in 5.5% convertible bonds issued by Kemrock. The bonds are convertible into ordinary shares or global depositary receipts each representing one ordinary share of Kemrock stock, and may be converted at any time on or after June 4, 2012 and up to the close of business on June 12, 2017. Our investment in Kemrock convertible bonds is an available for sale security, which reflects the offsetting value of the discount on the bond as of the balance sheet date, and is classified in other long-term assets in our Consolidated Balance Sheet. We reclassified approximately $73.6 million and $76.0 million out of other current assets into long-term assets as of August 31, 2012 and May 31, 2012, respectively, in order to reflect the timeframe over which these assets are intended to be used. Marketable securities are composed of available-for-sale securities and are reported at fair value. Realized gains and losses on sales of investments are recognized in net income on the specific identification basis. Changes in the fair values of securities that are considered temporary are recorded as unrealized gains and losses, net of applicable taxes, in accumulated other comprehensive income (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in operating income in the period in which the unrealized losses are deemed other than temporary. In order to determine whether other-than-temporary declines in market value have occurred, the duration of the decline in value and our ability to hold the investment are considered in conjunction with an evaluation of the strength of the underlying collateral and the extent to which the investment’s amortized cost or cost, as appropriate, exceeds its related market value. Gross gains and losses realized on sales of investments were $5.0 million and $0.4 million, respectively, for the quarter ended August 31, 2012. Gross gains and losses realized on sales of investments were $1.9 million and $2.8 million, respectively, for the quarter ended August 31, 2011. During the first quarter of fiscal 2013 and 2012, we recognized losses of $0.1 million and $0.4 million, respectively, for securities deemed to have other-than-temporary impairments. These amounts are included in investment expense (income), net in the Consolidated Statements of Income. Summarized below are the securities we held at August 31, 2012 and May 31, 2012 that were in an unrealized loss position and that were included in accumulated other comprehensive income, aggregated by the length of time the investments had been in that position:
|  | August 31, 2012 |  |  | May 31, 2012 |
(In thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Total investments with unrealized losses |  | $ | 24,325 |  |  | $ | (986 | ) |  | $ | 43,772 |  |  | $ | (3,078 | )
Unrealized losses with a loss position for less than 12 months |  |  | 22,723 |  |  |  | (441 | ) |  |  | 42,114 |  |  |  | (2,596 | )
Unrealized losses with a loss position for more than 12 months |  |  | 1,602 |  |  |  | (545 | ) |  |  | 1,658 |  |  |  | (482 | )
We have reviewed all of the securities included in the table above and have concluded that we have the ability and intent to hold these investments until their cost can be recovered, based upon the severity and duration of the decline. Therefore, we did not recognize any other-than-temporary impairment losses on these investments. Unrealized losses at August 31, 2012 were generally related to the volatility in valuations over the last several months for a portion of our portfolio of investments in marketable securities. The unrealized losses generally relate to investments whose fair values at August 31, 2012 were less than 15% below their original cost or have been in a loss position for less than six consecutive months. Although we have begun to see recovery in general economic conditions over the past year, if we were to experience continuing or significant unrealized losses within our portfolio of investments in marketable securities in the future, we may recognize additional other-than-temporary impairment losses. Such potential losses could have a material impact on our results of operations in any given reporting period. As such, we continue to closely evaluate the status of our investments and our ability and intent to hold these investments. The net carrying values of debt securities at August 31, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
(In thousands) |  | Amortized Cost |  |  | Fair Value |
Due: |  |  |  |  |  |  |  |
Less than one year |  | $ | 913 |  |  | $ | 914 |
One year through five years |  |  | 29,643 |  |  |  | 29,935 |
Six years through ten years |  |  | 4,557 |  |  |  | 4,776 |
After ten years |  |  | 1,851 |  |  |  | 2,141 |
|  | $ | 36,964 |  |  | $ | 37,766 |

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- Definition Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26626-111562 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.4) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.2,12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 + Details
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