v2.3.0.11
Investments
 6 Months Ended
May 31, 2011
Investments [Abstract]  
Investments
Note 5: Investments
A summary of our cash, cash equivalents and available-for-sale investments at May 31, 2011 is as follows:
                                 
(In thousands)
    Cost     Unrealized     Unrealized     Fair  
Security Type   Basis     Gains     Losses     Value  
 
Cash
  $ 180,732     $ —     $ —     $ 180,732  
Money market funds
    117,778       —       —       117,778  
State and municipal bond obligations
    78,747       189       (12 )     78,924  
Auction rate securities — municipal bonds
    27,200       —       (3,468 )     23,732  
Auction rate securities — student loans
    12,800       —       (1,748 )     11,052  
Corporate bonds
    11,547       —       (3 )     11,544  
 
Total
  $ 428,804     $ 189     $ (5,231 )   $ 423,762  
 
Such amounts are classified on our balance sheet at May 31, 2011 as follows:
                         
(In thousands)
    Cash and     Short-term     Long-term  
Security Type   Equivalents     Investments     Investments  
 
Cash
  $ 180,732     $ —     $ —  
Money market funds
    117,778       —       —  
State and municipal bond obligations
    11,932       66,992       —  
Auction rate securities — municipal bonds
    —       —       23,732  
Auction rate securities — student loans
    —       —       11,052  
Corporate bonds
    —       11,544       —  
 
Total
  $ 310,442     $ 78,536     $ 34,784  
 
For each of the auction rate securities (ARS), we evaluated the risks related to the structure, collateral and liquidity of the investment, and forecasted the probability of issuer default, auction failure and a successful auction at par or a redemption at par for each future auction period. The weighted average cash flow for each period was then discounted back to present value for each security. Based on this methodology, we determined that the fair value of our non-current ARS investments is $34.8 million, and the temporary impairment charge recorded as of May 31, 2011 in accumulated other comprehensive loss to reduce the value of our available-for-sale ARS investments was $5.2 million.
We will not be able to access these remaining funds until a future auction for these ARS is successful, we sell the securities in a secondary market, or they are redeemed by the issuer. As such, these remaining investments currently lack short-term liquidity and are therefore classified as long-term investments on the balance sheet at May 31, 2011. However, based on our cash and short-term investments balance of $389.0 million and expected operating cash flows, we do not anticipate the lack of liquidity associated with these ARS to adversely affect our ability to conduct business and believe we have the ability to hold the affected securities throughout the currently estimated recovery period. Therefore, the impairment on these securities is considered only temporary in nature. If the credit rating of either the security issuer or the third-party insurer underlying the investments deteriorates significantly, we may be required to adjust the carrying value of the ARS through an other-than-temporary impairment charge to earnings.
A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2010 is as follows:
                                 
(In thousands)
    Cost     Unrealized     Unrealized     Fair  
Security Type   Basis     Gains     Losses     Value  
 
Cash
  $ 154,718     $ —     $ —     $ 154,718  
Money market funds
    122,415       —       —       122,415  
State and municipal bond obligations
    25,484       207       (10 )     25,681  
US government and agency securities
    10,000       —       —       10,000  
Auction rate securities — municipal bonds
    27,200       —       (3,560 )     23,640  
Auction rate securities — student loans
    19,000       —       (2,997 )     16,003  
Corporate bonds
    9,418       —       (21 )     9,397  
Certificates of deposit
    185       —       —       185  
 
Total
  $ 368,420     $ 207     $ (6,588 )   $ 362,039  
 
Such amounts are classified on our balance sheet at November 30, 2010 as follows:
                         
(In thousands)
    Cash and     Short-term     Long-term  
Security Type   Equivalents     Investments     Investments  
 
Cash
  $ 154,718     $ —     $ —  
Money market funds
    122,415       —       —  
State and municipal bond obligations
    1,926       23,755       —  
US government and agency securities
    7,500       2,500       —  
Auction rate securities — municipal bonds
    —       —       23,640  
Auction rate securities — student loans
    —       —       16,003  
Corporate bonds
    —       9,397       —  
Certificates of deposit
    —       185       —  
 
Total
  $ 286,559     $ 35,837     $ 39,643  
 
The fair value of debt securities at May 31, 2011 and November 30, 2010, by contractual maturity, is as follows:
                 
(In thousands)
    May 31, 2011     Nov. 30, 2010  
 
Due in one year or less (1)
  $ 100,540     $ 70,285  
Due after one year
    24,712       14,621  
 
Total
  $ 125,252     $ 84,906  
 
 
(1)   Includes ARS which are tendered for interest-rate setting purposes periodically throughout the year. Beginning in February 2008, auctions for these securities began to fail, and therefore these investments currently lack short-term liquidity. The remaining contractual maturities of these securities range from 13 to 31 years.
Investments with continuous unrealized losses for less than twelve months and twelve months or greater and their related fair values are as follows at May 31, 2011:
                                                 
(In thousands)
            Less Than             12 Months              
            12 Months             or Greater     Total     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Security Type   Value     Losses     Value     Losses     Value     Losses  
 
State and municipal bond obligations
  $ 27,756     $ (12 )   $ —     $ —     $ 27,756     $ (12 )
Auction rate securities — municipal bonds
    —       —       23,732       (3,468 )     23,732       (3,468 )
Auction rate securities — student loans
    —       —       11,052       (1,748 )     11,052       (1,748 )
Corporate bonds
    6,136       (3 )     —       —       6,136       (3 )
 
Total
  $ 33,892     $ (15 )   $ 34,784     $ (5,216 )   $ 68,676     $ (5,231 )
 
Investments with continuous unrealized losses for less than twelve months and twelve months or greater and their related fair values are as follows at November 30, 2010:
                                                 
(In thousands)
            Less Than             12 Months              
            12 Months             or Greater     Total     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Security Type   Value     Losses     Value     Losses     Value     Losses  
 
State and municipal bond obligations
  $ 6,506     $ (10 )   $ —     $ —     $ 6,506     $ (10 )
Auction rate securities — municipal bonds
    —       —       23,640       (3,560 )     23,640       (3,560 )
Auction rate securities — student loans
    —       —       16,003       (2,997 )     16,003       (2,997 )
Corporate bonds
    9,397       (21 )     —       —       9,397       (21 )
 
Total
  $ 15,903     $ (31 )   $ 39,643     $ (6,557 )   $ 55,546     $ (6,588 )
 
The unrealized losses associated with state and municipal obligations and corporate bonds and notes are attributable to changes in interest rates. The unrealized losses associated with ARS are discussed above. Management does not believe any unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of May 31, 2011.