XML 19 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Cash and Marketable Securities
 3 Months Ended
Aug. 31, 2020
Cash and Cash Equivalents [Abstract]  
Cash and marketable securities
2. CASH AND MARKETABLE SECURITIES
Cash and Cash Equivalents
Cash and cash equivalents consist of bank demand accounts, savings deposits, certificates of deposit and commercial paper with original maturities of 90 days or less. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has not experienced losses related to these balances and believes it is not exposed to significant credit risk regarding its cash and cash equivalents. Cash and cash equivalents were $60,947,000 and $66,269,000 at August 31, 2020 and May 31, 2020, respectively. The carrying value of these assets approximates fair value due to the short maturity of these instruments and is classified as Level 1 in the fair value hierarchy.
Marketable Securities
The Company has marketable securities held by banks or broker-dealers at August 31, 2020. Changes in market value are monitored and recorded on a monthly basis; in the event of a downgrade in credit quality subsequent to purchase, the marketable security investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable security portfolio.
These securities are classified as available for sale. The primary objective of management’s short-term investment activity is to preserve capital for the purpose of funding current operations, capital expenditures and business acquisitions; short-term investments are not entered into for trading or speculative purposes. These securities are recorded at fair value based on recent trades or pricing models and therefore meet the Level 2 criteria. Interest income on these investments is recorded within other income on the income statement. Adjustments in the fair value of these assets are recorded in other comprehensive income.
Marketable Securities as of August 31, 2020 and May 31, 2020 are listed below by classification and remaining maturities.
 
(in thousands)
  
Maturity
  
August 31,
2020
 
  
May 31,
2020
 
US Treasuries
  
0—90 days
  
$
—  
 
  
$
—  
 
 
  
91—180 days
  
 
2,516
 
  
 
—  
 
 
  
181 days—1 year
  
 
—  
 
  
 
2,532
 
 
  
1—2 years
  
 
—  
 
  
 
—  
 
Commercial Paper & Corporate Bonds
  
0—90 days
  
 
120,055
 
  
 
133,130
 
 
  
91—180 days
  
 
93,239
 
  
 
73,824
 
 
  
181 days—1 year
  
 
63,668
 
  
 
43,231
 
 
  
1—2 years
  
 
10,012
 
  
 
7,839
 
Certificates of Deposit
  
0—90 days
  
 
4,908
 
  
 
1,003
 
 
  
91—180 days
  
 
1,257
 
  
 
5,184
 
 
  
181 days—1 year
  
 
8,338
 
  
 
6,069
 
 
  
1—2 years
  
 
2,546
 
  
 
4,592
 
 
  
  
  
 
 
 
  
 
 
 
Total Marketable Securities
  
  
  
$
306,539
 
  
$
277,404
 
 
  
  
  
 
 
 
  
 
 
 
The components of marketable securities at August 31, 2020 are as follows:
 
(in thousands)
  
Amortized
Cost
 
  
Unrealized
Gains
 
  
Unrealized
Losses
 
  
Fair Value
 
US Treasuries
  
$
2,502
 
  
$
14
 
  
$
—
 
  
$
2,516
 
Commercial Paper & Corporate Bonds
  
 
286,211
 
  
 
820
 
  
 
(57
) 
  
 
286,974
 
Certificates of Deposit
  
 
16,911
 
  
 
138
 
  
 
—
 
  
 
17,049
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Marketable Securities
  
$
305,624
 
  
$
972
 
  
$
(57
) 
  
$
306,539
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
The components of marketable securities at May 31, 2020 are as follows:
 
(in thousands)
  
Amortized
Cost
 
  
Unrealized
Gains
 
  
Unrealized
Losses
 
  
Fair Value
 
US Treasuries
  
$
2,502
 
  
$
30
 
  
$
—
 
  
$
2,532
 
Commercial Paper & Corporate Bonds
  
 
257,700
 
  
 
347
 
  
 
(23
) 
  
 
258,024
 
Certificates of Deposit
  
 
16,648
 
  
 
200
 
  
 
—
 
  
 
16,848
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Marketable Securities
  
$
276,850
 
  
$
577
 
  
$
(23
) 
  
$
277,404