NOTE 4 — MARKETABLE SECURITIES

The following tables summarize marketable securities held at November 30, 2011 and May 31, 2011 by asset type:


	Available-For-Sale Securities
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value (Net Carrying Amount)
November 30, 2011
Equity securities:
Stocks — foreign	$	1,056	$	236	$	(78	)	$	1,214
Stocks — domestic		25,068		1,989		(1,576	)		25,481
Mutual funds — foreign		14,694		953		(358	)		15,289
Mutual funds — domestic		37,411		624		(648	)		37,387

Total equity securities		78,229		3,802		(2,660	)		79,371
Fixed maturity:
U.S. treasury and other government		16,853		390		(54	)		17,189
Corporate bonds		2,622		276		(27	)		2,871
Foreign bonds		38		—		(2	)		36
Mortgage-backed securities		240		102		—			342

Total fixed maturity securities		19,753		768		(83	)		20,438

Total	$	97,982	$	4,570	$	(2,743	)	$	99,809


	Available-For-Sale Securities
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value (Net Carrying Amount)
May 31, 2011
Equity securities:
Stocks — foreign	$	25,387	$	12,162	$	—		$	37,549
Stocks — domestic		28,044		4,222		(417	)		31,849
Mutual funds — foreign		14,680		3,733		—			18,413
Mutual funds — domestic		30,565		2,246		(1,020	)		31,791

Total equity securities		98,676		22,363		(1,437	)		119,602
Fixed maturity:
U.S. treasury and other government		25,916		643		(79	)		26,480
Corporate bonds		2,729		301		(1	)		3,029
Mortgage-backed securities		432		101		(1	)		532

Total fixed maturity securities		29,077		1,045		(81	)		30,041

Total	$	127,753	$	23,408	$	(1,518	)	$	149,643

Marketable securities, which totaled $99.8 million at November 30, 2011, were included in other current assets. At May 31, 2011, marketable securities, included in other current and long-term assets, totaled $113.8 million and $35.8 million, respectively. During the second fiscal quarter ended November 30, 2011, we acquired additional shares in Kemrock, which required us to change our method of accounting for this long-term investment from an available for sale security to the equity method, as further described below under Note 9.

Marketable securities are composed of available-for-sale securities and are reported at fair value. Realized gains and losses on sales of investments are recognized in net income on the specific identification basis. Changes in the fair values of securities that are considered temporary are recorded as unrealized gains and losses, net of applicable taxes, in accumulated other comprehensive income (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in operating income in the period in which the unrealized losses are deemed other than temporary. In order to determine whether other-than-temporary declines in market value have occurred, the duration of the decline in value and our ability to hold the investment are considered in conjunction with an evaluation of the strength of the underlying collateral and the extent to which the investment’s amortized cost or cost, as appropriate, exceeds its related market value.

Gross gains and losses realized on sales of investments were $1.9 million and $1.9 million, respectively, for the quarter ended November 30, 2011. Gross gains and losses realized on sales of investments were $3.5 million and $0.3 million, respectively, for the quarter ended November 30, 2010. During the second quarter of fiscal 2012 and fiscal 2011, we recognized losses of $0.3 million and $0.4 million, respectively, for securities deemed to have other-than-temporary impairments. These amounts are included in investment income, net in the Consolidated Statements of Income.

Gross gains and losses realized on sales of investments were $3.8 million and $4.7 million, respectively, for the six month period ended November 30, 2011. Gross gains and losses realized on sales of investments were $5.9 million and $2.0 million, respectively, for the six month period ended November 30, 2010. During the first half of fiscal 2012 and 2011, we recognized losses of $0.7 million and $0.5 million, respectively, for securities deemed to have other-than-temporary impairments.

Summarized below are the securities we held at November 30, 2011 and May 31, 2011 that were in an unrealized loss position and that were included in accumulated other comprehensive income, aggregated by the length of time the investments had been in that position:


	November 30, 2011					May 31, 2011
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Total investments with unrealized losses	$	40,559	$	(2,743	)	$	21,612	$	(1,518	)
Unrealized losses with a loss position for less than 12 months		40,508		(2,713	)		19,721		(1,301	)
Unrealized losses with a loss position for more than 12 months		51		(30	)		1,891		(217	)

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. Therefore, we did not recognize any other-than-temporary impairment losses on these investments. Unrealized losses at November 30, 2011 were generally related to the volatility in valuations over the last several months for a portion of our portfolio of investments in marketable securities. The unrealized losses, which totaled $2.7 million as of November 30, 2011, generally relate to investments whose fair values at November 30, 2011 were less than 15% below their original cost or have been in a loss position for less than six consecutive months. If we were to experience unrealized losses that were to continue for longer periods of time, or arise to more significant levels of unrealized losses within our portfolio of investments in marketable securities in the future, we may recognize additional other-than-temporary impairment losses. Such potential losses could have a material impact on our results of operations in any given reporting period. As such, we continue to closely evaluate the status of our investments and our ability and intent to hold these investments.

The net carrying values of debt securities at November 30, 2011, 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.


	Amortized Cost		Fair Value
	(In thousands)
Due:
Less than one year	$	3,667	$	3,641
One year through five years		12,244		12,474
Six years through ten years		1,126		1,229
After ten years		2,716		3,094

	$	19,753	$	20,438