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Marketable Securities | 12 Months Ended
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May 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Marketable Securities | NOTE D — MARKETABLE SECURITIES The following tables summarize available-for-sale debt securities held at May 31, 2022 and 2021 by asset type:
|  | Available-For-Sale Debt Securities |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value (Net Carrying Amount) |
May 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and other government |  | $ | 26,522 |  |  | $ | 55 |  |  | $ | (1,338 | ) |  | $ | 25,239 |
Corporate bonds |  |  | 147 |  |  |  | 12 |  |  |  | (4 | ) |  |  | 155 |
Total available-for-sale debt securities |  | $ | 26,669 |  |  | $ | 67 |  |  | $ | (1,342 | ) |  | $ | 25,394 |
|  | Available-For-Sale Debt Securities |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value (Net Carrying Amount) |
May 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and other government |  | $ | 26,154 |  |  | $ | 593 |  |  | $ | (184 | ) |  | $ | 26,563 |
Corporate bonds |  |  | 143 |  |  |  | 39 |  |  |  | - |  |  |  | 182 |
Total available-for-sale debt securities |  | $ | 26,297 |  |  | $ | 632 |  |  | $ | (184 | ) |  | $ | 26,745 |
Marketable securities are composed of available-for-sale debt securities and marketable equity securities and all marketable securities 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. Available-for-sale debt securities are included in other current and long-term assets totaling $6.0 million and $19.4 million at May 31, 2022, respectively, and included in other current and long-term assets totaling $3.9 million and $22.8 million at May 31, 2021, respectively. Realized gains and losses on sales of available-for-sale debt securities are recognized in net income on the specific identification basis. Changes in the fair values of available-for-sale debt securities that are determined to be holding gains or losses are recorded through accumulated other comprehensive income (loss), net of applicable taxes, within stockholders' equity. In assessing whether a credit loss exists, we evaluate our ability to hold the investment, the strength of the underlying collateral and the extent to which the investment's amortized cost or cost, as appropriate, exceeds it related fair value. As of May 31, 2022 and 2021, we held approximately $119.0 million and $142.1 million in marketable equity securities, respectively. Realized and unrealized gains and losses on marketable equity securities are included in investment (income), net in the Consolidated Statements of Income. Refer to Note A(15), “Investment Expense (Income), Net,” for further details. Summarized below are the available-for-sale debt securities we held at May 31, 2022 and 2 021 that were in an unrealized loss position and that were included in accumulated other comprehensive income (loss), aggregated by the length of time the investments had been in that position:
|  | May 31, 2022 |  |  | May 31, 2021 |
(In thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Total investments with unrealized losses |  | $ | 22,702 |  |  | $ | (1,342 | ) |  | $ | 8,420 |  |  | $ | (184 | )
Unrealized losses with a loss position for less than 12 months |  |  | 16,273 |  |  |  | (543 | ) |  |  | 6,920 |  |  |  | (152 | )
Unrealized losses with a loss position for more than 12 months |  |  | 6,429 |  |  |  | (799 | ) |  |  | 1,500 |  |  |  | (32 | )
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. The decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated these securities and have determined no allowance for credit losses is necessary for these investments. The net carrying values of available-for-sale debt securities at May 31, 2022, 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 |  | $ | 6,057 |  |  | $ | 6,048 |
One year through five years |  |  | 14,866 |  |  |  | 14,201 |
Six years through ten years |  |  | 3,219 |  |  |  | 2,993 |
After ten years |  |  | 2,527 |  |  |  | 2,152 |
|  | $ | 26,669 |  |  | $ | 25,394 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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