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Marketable Securities | 6 Months Ended
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Nov. 30, 2018
Investments Debt And Equity Securities [Abstract] |
Marketable Securities | NOTE 4 — MARKETABLE SECURITIES The following tables summarize available-for-sale marketable securities held at November 30, 2018 and May 31, 2018 by asset type:
|  | Available-For-Sale Securities |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value (Net Carrying Amount) |
November 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and other government |  | $ | 23,292 |  |  | $ | 26 |  |  | $ | (535 | ) |  | $ | 22,783 |
Corporate bonds |  |  | 411 |  |  |  | 29 |  |  |  | - |  |  |  | 440 |
Total available-for-sale securities |  | $ | 23,703 |  |  | $ | 55 |  |  | $ | (535 | ) |  | $ | 23,223 |
|  | Available-For-Sale Securities |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value (Net Carrying Amount) |
May 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual funds - foreign |  | $ | 46,123 |  |  | $ | 1,839 |  |  | $ | (1,197 | ) |  | $ | 46,765 |
Mutual funds - domestic |  |  | 99,833 |  |  |  | 727 |  |  |  | (2,770 | ) |  |  | 97,790 |
Total equity securities |  |  | 145,956 |  |  |  | 2,566 |  |  |  | (3,967 | ) |  |  | 144,555 |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and other government |  |  | 23,562 |  |  |  | 39 |  |  |  | (552 | ) |  |  | 23,049 |
Corporate bonds |  |  | 432 |  |  |  | 43 |  |  |  | (8 | ) |  |  | 467 |
Total fixed maturity securities |  |  | 23,994 |  |  |  | 82 |  |  |  | (560 | ) |  |  | 23,516 |
Total |  | $ | 169,950 |  |  | $ | 2,648 |  |  | $ | (4,527 | ) |  | $ | 168,071 |
Marketable securities, included in other current and long-term assets totaling $7.8 million and $15.4 million at November 30, 2018, respectively, and included in other current and long-term assets totaling $97.4 million and $70.7 million at May 31, 2018, respectively, are composed of available-for-sale securities and are reported at fair value. We carry a portion of our marketable securities portfolio in long-term assets since they are generally held for the settlement of our general and product liability insurance claims processed through our wholly owned captive insurance subsidiaries. Marketable securities are composed of available-for-sale debt 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 (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in investment income, net 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. During fiscal 2019, we adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities,” which requires gains and losses on marketable equity securities to be recognized in earnings rather than in other comprehensive income. Prior to adoption, equity securities were included in our available-for-sale portfolio and unrealized changes in fair value were recognized through other comprehensive (loss) income until realized, at which point we recorded a gain or loss on sale. As of November 30, 2018, we held approximately $116.7 million in equity securities. Additionally, as of November 30, 2018 and May 31, 2018, we held approximately $12.0 million and $9.9 million, respectively, in trading securities in relation to our deferred compensation plan. Gross realized gains and losses on sales of marketable securities are included in investment (income), net in the Consolidated Statements of Income. Refer to Note 7, “Investment Expense (Income), Net,” for further details. Summarized below are the available-for-sale securities we held at November 30, 2018 and May 31, 2018 that were in an unrealized loss position and that were included in accumulated other comprehensive (loss), aggregated by the length of time the investments had been in that position:
|  | November 30, 2018 |  |  | May 31, 2018 |
(In thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Total investments with unrealized losses |  | $ | 20,215 |  |  | $ | (535 | ) |  | $ | 106,253 |  |  | $ | (4,527 | )
Unrealized losses with a loss position for less than 12 months |  |  | 2,646 |  |  |  | (19 | ) |  |  | 68,376 |  |  |  | (1,570 | )
Unrealized losses with a loss position for more than 12 months |  |  | 17,569 |  |  |  | (516 | ) |  |  | 37,877 |  |  |  | (2,957 | )
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. The unrealized losses generally relate to investments whose fair values at November 30, 2018 were less than 15% below their original cost. From time to time, we may experience significant volatility in general economic and market conditions. If we were to experience unrealized losses that were to continue for longer periods of time, or arise to more significant levels of unrealized losses within our portfolio of investments in marketable securities in the future, we may recognize additional other-than-temporary impairment losses. 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 November 30, 2018, 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 |  | $ | 7,897 |  |  | $ | 7,841 |
One year through five years |  |  | 11,576 |  |  |  | 11,282 |
Six years through ten years |  |  | 3,294 |  |  |  | 3,152 |
After ten years |  |  | 936 |  |  |  | 948 |
|  | $ | 23,703 |  |  | $ | 23,223 |

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