Cash and Marketable Securities

3 Months Ended

Aug. 31, 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 $71,283,000 and $75,602,000 at August 31, 2021 and May 31, 2021, 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, 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 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, 2021 and May 31, 2021 are listed below by classification and remaining maturities.


(in thousands)	Maturity	August 31, 2021		May 31, 2021
Commercial Paper & Corporate Bonds	0 - 90 days		82,115		106,631
	91 - 180 days		78,299		78,727
	181 days - 1 year		90,026		87,590
	1 - 2 years		76,647		26,752
Certificates of Deposit	0 - 90 days		1,253		3,262
	91 - 180 days		1,006		1,260
	181 days - 1 year		251		1,263
	1 - 2 years		—		—

Total Marketable Securities		$	329,597	$	305,485

The components of marketable securities at August 31, 2021 are as follows:


(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial Paper & Corporate Bonds	$	327,157	$	53	$	(123	)	$	327,087
Certificates of Deposit		2,503		7		—			2,510

Total Marketable Securities	$	329,660	$	60	$	(123	)	$	329,597

The components of marketable securities at May 31, 2021 are as follows:


(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial Paper & Corporate Bonds	$	299,524	$	209	$	(33	)	$	299,700
Certificates of Deposit		5,755		30		—			5,785

Total Marketable Securities	$	305,279	$	239	$	(33	)	$	305,485