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Marketable Securities
 12 Months Ended
May 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities

NOTE D — MARKETABLE SECURITIES

The following tables summarize available-for-sale debt securities held at May 31, 2023 and 2022 by asset type:

 

 

Available-For-Sale Debt Securities

 

(In thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value
(Net Carrying
Amount)

 

May 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury and other government

 

$

28,841

 

 

$

23

 

 

$

(1,843

)

 

$

27,021

 

Corporate bonds

 

 

147

 

 

 

6

 

 

 

(12

)

 

 

141

 

Total available-for-sale debt securities

 

$

28,988

 

 

$

29

 

 

$

(1,855

)

 

$

27,162

 

 

 

 

Available-For-Sale Debt Securities

 

(In thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value
(Net
Carrying
Amount)

 

May 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury and other government

 

$

26,522

 

 

$

55

 

 

$

(1,338

)

 

$

25,239

 

Corporate bonds

 

 

147

 

 

 

12

 

 

 

(4

)

 

 

155

 

Total available-for-sale debt securities

 

$

26,669

 

 

$

67

 

 

$

(1,342

)

 

$

25,394

 

 

Marketable securities are composed of available-for-sale debt securities and marketable equity securities and all marketable securities are reported at fair value. We carry a portion of our marketable securities portfolio in long-term assets since they are generally held for the settlement of our general and product liability insurance claims processed through our wholly owned captive insurance subsidiaries.

Available-for-sale debt securities are included in other current and long-term assets totaling $5.1 million and $22.1 million at May 31, 2023, respectively, and included in other current and long-term assets totaling $6.0 million and $19.4 million at May 31, 2022, respectively. Realized gains and losses on sales of available-for-sale debt securities are recognized in net income on the specific identification basis. Changes in the fair values of available-for-sale debt securities that are determined to be holding gains or losses are recorded through accumulated other comprehensive income (loss), net of applicable taxes, within stockholders' equity. In assessing whether a credit loss exists, we evaluate our ability to hold the investment, the strength of the underlying collateral and the extent to which the investment's amortized cost or cost, as appropriate, exceeds it related fair value.

As of May 31, 2023 and 2022, we held approximately $121.2 million and $119.0 million in marketable equity securities, respectively. Realized and unrealized gains and losses on marketable equity securities are included in Investment (Income) Expense, Net in the Consolidated Statements of Income. Refer to Note A(15), “Summary of Significant Accounting Policies - Investment (Income) Expense, Net,” to the Consolidated Financial Statements for further details.

Summarized below are the available-for-sale debt securities we held at May 31, 2023 and 2022 that were in an unrealized loss position and that were included in accumulated other comprehensive income (loss), aggregated by the length of time the investments had been in that position:

 

 

May 31, 2023

 

 

May 31, 2022

 

(In thousands)

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

Total investments with unrealized losses

 

$

24,245

 

 

$

(1,855

)

 

$

22,702

 

 

$

(1,342

)

Unrealized losses with a loss position for less than 12 months

 

 

6,285

 

 

 

(72

)

 

 

16,273

 

 

 

(543

)

Unrealized losses with a loss position for more than 12 months

 

 

17,960

 

 

 

(1,783

)

 

 

6,429

 

 

 

(799

)

We have reviewed all of the securities included in the table above and have concluded that we have the ability and intent to hold these investments until their cost can be recovered, based upon the severity and duration of the decline. The decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated these securities and have determined no allowance for credit losses is necessary for these investments.

The net carrying values of available-for-sale debt securities at May 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

(In thousands)

 

Amortized Cost

 

 

Fair Value

 

Due:

 

 

 

 

 

 

Less than one year

 

$

5,308

 

 

$

5,143

 

One year through five years

 

 

19,172

 

 

 

18,334

 

Six years through ten years

 

 

2,023

 

 

 

1,742

 

After ten years

 

 

2,485

 

 

 

1,943

 

 

 

$

28,988

 

 

$

27,162