NOTE 4 — MARKETABLE SECURITIES

The following tables summarize marketable securities held at August 31, 2018 and May 31, 2018 by asset type:

	Available-For-Sale Securities
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value (Net Carrying Amount)
August 31, 2018
Equity securities:
Mutual funds - foreign	$	47,736	$	1,241	$	(2,163	)	$	46,814
Mutual funds - domestic		100,244		4,810		(2,308	)		102,746
Total equity securities		147,980		6,051		(4,471	)		149,560
Fixed maturity:
U.S. treasury and other government		24,479		42		(494	)		24,027
Corporate bonds		422		39		(10	)		451
Total fixed maturity securities		24,901		81		(504	)		24,478
Total	$	172,881	$	6,132	$	(4,975	)	$	174,038

	Available-For-Sale Securities
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value (Net Carrying Amount)
May 31, 2018
Equity securities:
Mutual funds - foreign	$	46,123	$	1,839	$	(1,197	)	$	46,765
Mutual funds - domestic		99,833		727		(2,770	)		97,790
Total equity securities		145,956		2,566		(3,967	)		144,555
Fixed maturity:
U.S. treasury and other government		23,562		39		(552	)		23,049
Corporate bonds		432		43		(8	)		467
Total fixed maturity securities		23,994		82		(560	)		23,516
Total	$	169,950	$	2,648	$	(4,527	)	$	168,071

Marketable securities, included in other current and long-term assets totaling $102.8 million and $71.2 million at August 31, 2018, respectively, and included in other current and long-term assets totaling $97.4 million and $70.7 million at May 31, 2018, respectively, are composed of available-for-sale securities and 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.

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 (loss) within stockholders’ equity. Other-than-temporary declines in market value from original cost are reflected in investment income, net 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. In addition to the $174.0 million in available-for-sale securities presented in the table above, as of August 31, 2018, we held approximately $11.9 million in trading securities in relation to our deferred compensation plan. At May 31, 2018, the fair value of trading securities approximated $9.9 million.

Gross realized gains on sales of investments were $0.6 million and $4.0 million for the quarters ended August 31, 2018 and 2017, respectively. During the first quarter of fiscal 2019 and 2018, we recognized gross realized losses on sales of investments of $0.1 million and $1.1 million, respectively. These amounts are included in investment (income), net in the Consolidated Statements of Income.

Summarized below are the securities we held at August 31, 2018 and May 31, 2018 that were in an unrealized loss position and that were included in accumulated other comprehensive (loss), aggregated by the length of time the investments had been in that position:

	August 31, 2018					May 31, 2018
(In thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Total investments with unrealized losses	$	87,434	$	(4,975	)	$	106,253	$	(4,527	)
Unrealized losses with a loss position for less than 12 months		50,465		(1,950	)		68,376		(1,570	)
Unrealized losses with a loss position for more than 12 months		36,969		(3,025	)		37,877		(2,957	)

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. The unrealized losses generally relate to investments whose fair values at August 31, 2018 were less than 15% below their original cost. From time to time, we may experience significant volatility in general economic and market conditions. 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 August 31, 2018, 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	$	7,114	$	7,072
One year through five years		13,180		12,898
Six years through ten years		3,542		3,412
After ten years		1,065		1,096
	$	24,901	$	24,478