Short-Term Investments
Short-term investments consist of highly liquid investments, including
commercial paper, U.S. Treasury, U.S. Agency and corporate debt securities,
with maturities over 90 days at the date of purchase. Debt securities that the
Company has the ability and positive intent to hold to maturity are carried at
amortized cost. At May 31, 2015 and 2014, the Company did not hold any
short-term investments that were classified as trading or held-to-maturity.
At May 31, 2015 and 2014, Short-term investments consisted of availablefor-
sale securities. Available-for-sale securities are recorded at fair value with
unrealized gains and losses reported, net of tax, in Other comprehensive
income, unless unrealized losses are determined to be other than temporary.
Realized gains and losses on the sale of securities are determined by specific
identification. The Company considers all available-for-sale securities,
including those with maturity dates beyond 12 months, as available to
support current operational liquidity needs and therefore classifies all
securities with maturity dates beyond 90 days at the date of purchase as
current assets within Short-term investments on the Consolidated Balance
Sheets.
Refer to Note 6 — Fair Value Measurements for more information on the
Company’s short-term investments.