Annual report pursuant to Section 13 and 15(d)

Funds Held for Clients and Corporate Investments (Tables)

v2.4.0.8
Funds Held for Clients and Corporate Investments (Tables)
 12 Months Ended
May 31, 2014
Funds Held for Clients and Corporate Investments [Abstract]  
Funds held for clients and corporate investments
Funds held for clients and corporate investments are as follows:
 
 
May 31, 2014
In millions
 
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair
value
Type of issue:
 
 
 
 
 
 
 
 
Funds held for clients money market securities and other cash equivalents
 
$
1,579.2

 
$
—

 
$
—

 
$
1,579.2

Available-for-sale securities:
 
 
 
 
 
 
 
 
General obligation municipal bonds
 
1,605.4

 
25.0

 
(1.9
)
 
1,628.5

Pre-refunded municipal bonds(1)
 
140.4

 
2.4

 
—

 
142.8

Revenue municipal bonds
 
858.8

 
10.1

 
(1.1
)
 
867.8

Variable rate demand notes
 
752.3

 
—

 
—

 
752.3

Total available-for-sale securities
 
3,356.9

 
37.5

 
(3.0
)
 
3,391.4

Other
 
10.6

 
1.7

 
—

 
12.3

Total funds held for clients and corporate investments
 
$
4,946.7

 
$
39.2

 
$
(3.0
)
 
$
4,982.9

 
 
 
May 31, 2013
In millions
 
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair
value
Type of issue:
 
 
 
 
 
 
 
 
Funds held for clients money market securities and other cash equivalents
 
$
1,137.7

 
$
—

 
$
—

 
$
1,137.7

Available-for-sale securities:
 
 
 
 
 
 
 
 
General obligation municipal bonds
 
1,432.9

 
27.4

 
(3.5
)
 
1,456.8

Pre-refunded municipal bonds(1)
 
201.0

 
2.9

 
—

 
203.9

Revenue municipal bonds
 
746.1

 
10.1

 
(2.2
)
 
754.0

Variable rate demand notes
 
1,276.7

 
—

 
—

 
1,276.7

Total available-for-sale securities
 
3,656.7

 
40.4

 
(5.7
)
 
3,691.4

Other
 
9.5

 
1.2

 
—

 
10.7

Total funds held for clients and corporate investments
 
$
4,803.9

 
$
41.6

 
$
(5.7
)
 
$
4,839.8


(1) 
Pre-refunded municipal bonds are secured by an escrow fund of U.S. government obligations.
Classification of investments on the Consolidated Balance Sheets
Classification of investments on the Consolidated Balance Sheets is as follows:
 
 
May 31,
In millions
 
2014
 
2013
Funds held for clients
 
$
4,198.6

 
$
4,072.5

Corporate investments
 
398.7

 
398.2

Long-term corporate investments
 
385.6

 
369.1

Total funds held for clients and corporate investments
 
$
4,982.9

 
$
4,839.8

Securities in an unrealized loss position
The securities in an unrealized loss position were as follows:
 
May 31, 2014
 
Less than twelve months
 
More than twelve months
 
Total
In millions
Gross
unrealized
losses
 
Fair
value
 
Gross
unrealized
losses
 
Fair
Value
 
Gross
unrealized
losses
 
Fair
Value
Type of issue:
 
 
 
 
 
 
 
 
 
 
 
General obligation municipal bonds
$
(0.1
)
 
$
69.6

 
$
(1.8
)
 
$
164.0

 
$
(1.9
)
 
$
233.6

Pre-refunded municipal bonds
—

 
1.7

 
—

 
—

 
—

 
1.7

Revenue municipal bonds
—

 
47.5

 
(1.1
)
 
112.4

 
(1.1
)
 
159.9

Total
$
(0.1
)
 
$
118.8

 
$
(2.9
)
 
$
276.4

 
$
(3.0
)
 
$
395.2

 
May 31, 2013
 
Less than twelve months
 
More than twelve months
 
Total
In millions
Gross
unrealized
losses
 
Fair
value
 
Gross
unrealized
losses
 
Fair
Value
 
Gross
unrealized
losses
 
Fair
Value
Type of issue:
 
 
 
 
 
 
 
 
 
 
 
General obligation municipal bonds
$
(3.5
)
 
$
349.2

 
$
—

 
$
—

 
$
(3.5
)
 
$
349.2

Pre-refunded municipal bonds
—

 
3.1

 
—

 
—

 
—

 
3.1

Revenue municipal bonds
(2.2
)
 
225.3

 
—

 
2.1

 
(2.2
)
 
227.4

Total
$
(5.7
)
 
$
577.6

 
$
—

 
$
2.1

 
$
(5.7
)
 
$
579.7

Realized gain (loss) on investments
Realized gains and losses from the sale of available-for-sale securities were as follows:
 
 
Year ended May 31,
In millions
 
2014
 
2013
 
2012
Gross realized gains
 
$
0.6

 
$
0.9

 
$
1.0

Gross realized losses
 
—

 
—

 
—

Net realized gains
 
$
0.6

 
$
0.9

 
$
1.0

Amortized cost and fair value of available-for-sale securities by contractual maturity
The amortized cost and fair value of available-for-sale securities that had stated maturities as of May 31, 2014 are shown below by contractual maturity. Expected maturities can differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties.
 
 
May 31, 2014
In millions
 
Amortized
cost
 
Fair
value
Maturity date:
 
 
 
 
Due in one year or less
 
$
392.0

 
$
394.3

Due after one year through three years
 
759.8

 
776.0

Due after three years through five years
 
764.1

 
774.3

Due after five years
 
1,441.0

 
1,446.8

Total
 
$
3,356.9

 
$
3,391.4