XML 74 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
 12 Months Ended
May. 31, 2015
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, corporate notes and certain other securities.

 

The amortized principal amounts of our cash, cash equivalents and marketable securities approximated their fair values at May 31, 2015 and 2014. 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 2015, 2014 and 2013. 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)

 

2015

 

2014

U.S. Treasury securities

 

$

668

 

$

—

Commercial paper debt securities

 

 

  9,203

 

 

  7,969

Corporate debt securities and other

 

 

28,844

 

 

16,657

Total investments

 

$

38,715

 

$

24,626

Investments classified as cash equivalents

 

$

 6,063

 

$

  3,576

Investments classified as marketable securities

 

$

32,652

 

$

21,050

 

 

 

 

 

 

 

 

As of May 31, 2015 and 2014, approximately 28% and 45%, respectively, of our marketable securities investments mature within one year and 72% and 55%, respectively, mature within one to six years. 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, which have high credit ratings 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.