Cash, Cash Equivalents and Investments

A summary of our cash, cash equivalents and trading and available-for-sale investments at May 31, 2012 is as follows (in thousands):



	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	211,052	$	—	$	—		$	211,052
Money market funds	29,832		—		—			29,832
State and municipal bond obligations	77,931		292		(8		)	78,215
Auction rate securities – municipal bonds	27,175		—		(3,804		)	23,371
Auction rate securities – student loans	12,500		—		(1,723		)	10,777
Corporate bonds	6,455		—		(6		)	6,449
Total	$	364,945	$	292	$	(5,541	)	$	359,696

A summary of our cash, cash equivalents and trading and available-for-sale investments at November 30, 2011 is as follows (in thousands):



	Cost Basis		Unrealized Gains		Unrealized Losses			Fair Value
Cash	$	134,890	$	—	$	—		$	134,890
Money market funds	24,220		—		—			24,220
State and municipal bond obligations	84,193		221		(16		)	84,398
Brazilian mutual funds	15,346		—		—			15,346
Auction rate securities – municipal bonds	27,200		—		(4,269		)	22,931
Auction rate securities – student loans	12,700		—		(2,092		)	10,608
Corporate bonds	2,562		—		—			2,562
Total	$	301,111	$	221	$	(6,377	)	$	294,955

Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands):



	May 31, 2012						November 30, 2011
	Cash and Equivalents		Short-Term Investments		Long-Term Investments		Cash and Equivalents		Short-Term Investments		Long-Term Investments
Cash	$	211,052	$	—	$	—	$	134,890	$	—	$	—
Money market funds	29,832		—		—		24,220		—		—
State and municipal bond obligations	1,000		77,215		—		1,985		82,413		—
Brazilian mutual funds	—		—		—		—		15,346		—
Auction rate securities – municipal bonds	—		—		23,371		—		—		22,931
Auction rate securities – student loans	—		2,700		8,077		—		—		10,608
Corporate bonds	—		6,449		—		—		2,562		—
Total	$	241,884	$	86,364	$	31,448	$	161,095	$	100,321	$	33,539

As of May 31, 2012, we included in other accrued liabilities an amount of $2.0 million representing certain unsettled trades of state and municipal bond obligations included in short-term investments.

For each of the auction rate securities (ARS), we evaluated the risks related to the structure, collateral and liquidity of the investment, and forecasted the probability of issuer default, auction failure and a successful auction at par or a redemption at par for each future auction period. The weighted average cash flow for each period was then discounted back to present value for each security. Based on this methodology, we determined that the fair value of our ARS investments is $34.1 million and $33.5 million at May 31, 2012 and November 30, 2011, respectively. The temporary impairment recorded in accumulated other comprehensive loss to reduce the value of our available-for-sale ARS investments was $5.5 million and $6.4 million at May 31, 2012 and November 30, 2011, respectively.

We will not be able to access the funds associated with our ARS investments until a future auction for these ARS is successful, we sell the securities in a secondary market, or they are redeemed by the issuer. As such, these remaining investments currently lack short-term liquidity and are therefore classified as long-term investments on the condensed consolidated balance sheets at May 31, 2012 and November 30, 2011, with the exception of one ARS with a fair value of $2.7 million which was redeemed by the issuer in the third quarter of fiscal 2012 which we classified as short-term investments on the condensed consolidated balance sheet at May 31, 2012.

Based on our cash, cash equivalents and short-term investments balance of $328.2 million, expected operating cash flows and the availability of funds under our revolving credit facility, we do not anticipate that the lack of liquidity associated with our ARS will adversely affect our ability to conduct business and believe we have the ability to hold the affected securities throughout the currently estimated recovery period. Therefore, the impairment of these securities is considered only temporary in nature. If the credit rating of either the security issuer or the third-party insurer underlying the investments deteriorates significantly, we may be required to adjust the carrying value of the ARS through an other-than-temporary impairment charge to earnings.

The fair value of debt securities by contractual maturity is as follows (in thousands):



	May 31, 2012		November 30, 2011
Due in one year or less ⁽¹⁾	$	79,024	$	104,620
Due after one year	39,788		31,225
Total	$	118,812	$	135,845


(1)	Includes ARS which are tendered for interest-rate setting purposes periodically throughout the year. Beginning in February 2008, auctions for these securities began to fail, and therefore these investments currently lack short-term liquidity. The remaining contractual maturities of these securities range from 12 to 31 years.

Investments with continuous unrealized losses and their related fair values are as follows at May 31, 2012 (in thousands):



	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	15,613	$	(8	)	$	—	$	—		$	15,613	$	(8	)
Auction rate securities – municipal bonds	—		—			23,371		(3,804		)	23,371		(3,804		)
Auction rate securities – student loans	—		—			8,077		(1,723		)	8,077		(1,723		)
Corporate bonds	2,626		(6		)	—		—			2,626		(6		)
Total	$	18,239	$	(14	)	$	31,448	$	(5,527	)	$	49,687	$	(5,541	)

Investments with continuous unrealized losses and their related fair values are as follows at November 30, 2011 (in thousands):



	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal bond obligations	$	24,585	$	(16	)	$	—	$	—		$	24,585	$	(16	)
Auction rate securities – municipal bonds	—		—			22,931		(4,269		)	22,931		(4,269		)
Auction rate securities – student loans	—		—			10,608		(2,092		)	10,608		(2,092		)
Total	$	24,585	$	(16	)	$	33,539	$	(6,361	)	$	58,124	$	(6,377	)

The unrealized losses associated with state and municipal bond obligations and corporate bonds are attributable to changes in interest rates. The unrealized losses associated with ARS are discussed above. Management does not believe any unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of May 31, 2012.