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Marketable Securities
 6 Months Ended
Nov. 30, 2012
Marketable Securities [Abstract]  
MARKETABLE SECURITIES

NOTE K – MARKETABLE SECURITIES

Marketable securities, which are principally government agency bonds, auction rate investments and corporate commercial paper, are classified as “available-for-sale securities” in accordance with authoritative guidance issued by FASB and are reported at fair value, with unrealized gains and losses excluded from operations and reported as accumulated other comprehensive income (loss), net of the related tax effects, in stockholders’ equity. Cost is determined using the specific identification method. We hold investments in auction rate securities in order to generate higher than typical money market rate investment returns. Auction rate securities typically are high credit quality, generally achieved with municipal bond insurance. Credit risks are eased by the historical track record of bond insurers, which back a majority of this market. Sell orders for any security traded through an auction process could exceed bids and, in such cases, the auction fails and we may be unable to liquidate our position in the securities in the near term. As of November 30, 2012 and May 31, 2012, we had $1.85 million in investments in two auction rate securities issued by New York state and local government authorities that failed auctions. The authorities are current in their interest payments on the securities.

Marketable securities as of November 30, 2012 consisted of the following:

 

                                 
    Amortized
cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
    (in thousands)  

Available-for-sales securities

                                

U.S. government agency obligations

   $ 1,850     $ —       $ —       $ 1,850  

Corporate bond securities

     304       1       —         305  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 2,154     $ 1     $ —       $ 2,155  
   

 

 

    

 

 

    

 

 

    

 

 

  

Marketable securities as of May 31, 2012 consisted of the following:

 

                                 
    Amortized
cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
    (in thousands)  

Available-for-sales securities

                                

U.S. government agency obligations

   $ 7,739     $ 5     $ (45 )    $ 7,699  

Corporate bond securities

     6,516       10       (155 )      6,371  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 14,255     $ 15     $ (200 )    $ 14,070