CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES

12 Months Ended

May 31, 2013

Cash, Cash Equivalents and Marketable Securities [Abstract]

CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES

3. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES

Cash and cash equivalents primarily consist of deposits held at major banks, Tier-1 commercial paper and other securities with original maturities of 90 days or less. Marketable securities primarily consist of time deposits held at major banks, Tier-1 commercial paper and corporate notes.

The amortized principal amounts of our cash, cash equivalents and marketable securities approximated their fair values at May 31, 2013 and 2012. We use the specific identification method to determine any realized gains or losses from the sale of our marketable securities classified as available-for-sale. Such realized gains and losses were insignificant for fiscal 2013, 2012 and 2011. The following table summarizes the components of our cash equivalents and marketable securities held, substantially all of which were classified as available-for-sale:

	May 31,
(in millions)	2013		2012
Commercial paper debt securities	$	14,043	$	13,954
Corporate debt securities and other		4,935		2,337
Total investments	$	18,978	$	16,291
Investments classified as cash equivalents	$	1,375	$	570
Investments classified as marketable securities	$	17,603	$	15,721

As of May 31, 2013, approximately 91% of our marketable securities investments mature within one year. As of May 31, 2012, substantially all of our marketable securities investments matured within one year. Our investment portfolio is subject to market risk due to changes in interest rates. As described above, we limit purchases of marketable debt securities to investment grade securities and also limit the amount of credit exposure to any one issuer. As stated in our investment policy, we are averse to principal loss and seek to preserve our invested funds by limiting default risk and market risk.