Investment Securities

12 Months Ended

May 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following presents the Company’s investment securities as of May 30, 2020 and June 1, 2019 (in thousands):

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May 30, 2020	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Municipal bonds	$	16,093	$	86	$	—	$	16,179
Commercial paper	6,965		17		—		6,982
Corporate bonds	125,594		1,274		—		126,868
Certificates of deposits	1,492		—		—		1,492
Asset backed securities	2,629		13		—		2,642
Total current investment securities	$	152,773	$	1,390	$	—	$	154,163
Mutual funds	$	2,005	$	744	$	—	$	2,749
Total noncurrent investment securities	$	2,005	$	744	$	—	$	2,749

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June 1, 2019	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
US government and agency obligations	$	30,896	$	78	$	—	$	30,974
Municipal bonds	50,220		133		—		50,353
Commercial paper	9,953		—		8		9,945
Corporate bonds	147,068		94		—		147,162
Certificates of deposits	6,149		—		1		6,148
Asset backed securities	5,589		10		—		5,599
Total current investment securities	$	249,875	$	315	$	9	$	250,181
Mutual funds	$	2,331	$	1,026	$	—	$	3,357
Total noncurrent investment securities	$	2,331	$	1,026	$	—	$	3,357

Available-for-sale

Proceeds from the sales and maturities of available-for-sale securities were $204.3 million, $209.7 million, and $127.6 million during fiscal 2020, 2019, and 2018, respectively. Gross realized gains on those sales and maturities during fiscal 2020, 2019, and 2018 were $278,000, $9,000, and $25,000, respectively. Gross realized losses on those sales and maturities during fiscal 2020, 2019, and 2018 were $6,000, $33,000, and $83,000, respectively. For purposes of determining gross realized gains and losses, the cost of securities sold is based on the specific identification method.

Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities of investment securities at May 30, 2020, are as follows (in thousands):

	Estimated Fair Value
Within one year	$	88,381
1-5 years	65,782
Total	$	154,163

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Noncurrent

The mutual funds are classified as “Other long-term assets” in the Company’s Consolidated Balance Sheets. Gains and losses are recognized in other income (expenses) as Other, net in the Company's Consolidated Statements of Income.

Proceeds from sales and maturities of noncurrent investment securities were $1.2 million, $84,000 and $42,000 during fiscal 2020, 2019, and 2018, respectively. Gross realized gains on those sales and maturities during fiscal 2020, 2019, and 2018 were $611,000, $48,000, and $23,000, respectively. There were no realized losses for the fiscal 2020, 2019, and 2018. For purposes of determining gross realized gains and losses, the cost of securities sold is based on the specific identification method.