Cash and Marketable Securities

9 Months Ended

Feb. 28, 2021

Cash and Cash Equivalents [Abstract]

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 $73,482,000 and $66,269,000 at February 28, 2021 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 February 28, 2021. 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 securities investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable securities 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 February 28, 2021 and May 31, 2020 are listed below by classification and remaining maturities.


(in thousands)	Maturity	February 28, 2021		May 31, 2020
US Treasuries	0 - 90 days	$	—	$	—
	91 - 180 days		—		—
	181 days - 1 year		—		2,532
	1 - 2 years		—		—
Commercial Paper & Corporate Bonds	0 - 90 days		158,183		133,130
	91 - 180 days		81,850		73,824
	181 days - 1 year		30,189		43,231
	1 - 2 years		1,310		7,839
Certificates of Deposit	0 - 90 days		1,253		1,003
	91 - 180 days		3,550		5,184
	181 days -1 year		3,277		6,069
	1 - 2 years		253		4,592

Total Marketable Securities		$	279,865	$	277,404

The components of marketable securities at February 28, 2021 are as follows:


(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
US Treasuries	$	—	$	—	$	—		$	—
Commercial Paper & Corporate Bonds		271,600		185		(253	)		271,532
Certificates of Deposit		8,284		49		—			8,333

Total Marketable Securities	$	279,884	$	234	$	(253	)	$	279,865

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