Paychex, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Funds Held for Clients and Corporate Investments (Tables)

Funds Held for Clients and Corporate Investments (Tables)

12 Months Ended

May 31, 2018

Funds Held for Clients and Corporate Investments [Abstract]

Funds Held for Clients and Corporate Investments



		May 31, 2018
					Gross			Gross
		Amortized			unrealized			unrealized			Fair
In millions		cost			gains			losses			value
Type of issue:
Funds held for clients' money market securities and other cash equivalents		$	1,942.3		$	—		$	—		$	1,942.3
Available-for-sale securities:
Corporate bonds			328.6			0.1			(7.3)			321.4
General obligation municipal bonds			1,231.6			1.3			(11.2)			1,221.7
Pre-refunded municipal bonds(1)			50.9			0.1			(0.1)			50.9
Revenue municipal bonds			813.5			0.9			(8.0)			806.4
U.S. government agency securities			410.2			—			(14.1)			396.1
Variable rate demand notes			308.3			—			—			308.3
Total available-for-sale securities			3,143.1			2.4			(40.7)			3,104.8
Other			16.1			2.1			—			18.2
Total funds held for clients and corporate investments		$	5,101.5		$	4.5		$	(40.7)		$	5,065.3



		May 31, 2017
					Gross			Gross
		Amortized			unrealized			unrealized			Fair
In millions		cost			gains			losses			value
Type of issue:
Funds held for clients' money market securities and other cash equivalents		$	264.8		$	—		$	—		$	264.8
Available-for-sale securities:
Corporate bonds			208.6			2.7			(0.5)			210.8
General obligation municipal bonds			1,422.0			21.2			(0.9)			1,442.3
Pre-refunded municipal bonds(1)			54.6			0.9			—			55.5
Revenue municipal bonds			929.2			12.5			(0.8)			940.9
U.S. government agency securities			328.9			0.5			(3.6)			325.8
Variable rate demand notes			1,637.9			—			—			1,637.9
Total available-for-sale securities			4,581.2			37.8			(5.8)			4,613.2
Other			14.8			1.9			—			16.7
Total funds held for clients and corporate investments		$	4,860.8		$	39.7		$	(5.8)		$	4,894.7

(1)

Pre-refunded municipal bonds are secured by an escrow fund of U.S. government obligations.

Classification of Investments on Consolidated Balance Sheets



		May 31,
In millions		2018			2017
Funds held for clients		$	4,703.8		$	4,301.9
Corporate investments			66.0			138.8
Long-term corporate investments			295.5			454.0
Total funds held for clients and corporate investments		$	5,065.3		$	4,894.7

Securities in Unrealized Loss Position



		May 31, 2018
		Securities in an unrealized loss position for less than twelve months						Securities in an unrealized loss position for more than twelve months						Total
		Gross						Gross						Gross
		unrealized			Fair			unrealized			Fair			unrealized			Fair
In millions		losses			value			losses			value			losses			value
Type of issue:
Corporate bonds		$	(6.0)		$	271.5		$	(1.3)		$	34.6		$	(7.3)		$	306.1
General obligation municipal bonds			(8.7)			856.4			(2.5)			68.9			(11.2)			925.3
Pre-refunded municipal bonds			(0.1)			18.5			—			0.5			(0.1)			19.0
Revenue municipal bonds			(6.3)			540.9			(1.7)			50.9			(8.0)			591.8
U.S. government agency securities			(6.4)			219.7			(7.7)			176.4			(14.1)			396.1
Total		$	(27.5)		$	1,907.0		$	(13.2)		$	331.3		$	(40.7)		$	2,238.3



		May 31, 2017
		Securities in an unrealized loss position for less than twelve months						Securities in an unrealized loss position for more than twelve months						Total
		Gross						Gross						Gross
		unrealized			Fair			unrealized			Fair			unrealized			Fair
In millions		losses			value			losses			value			losses			value
Type of issue:
Corporate bonds		$	(0.5)		$	43.6		$	—		$	—		$	(0.5)		$	43.6
General obligation municipal bonds			(0.9)			188.8			—			—			(0.9)			188.8
Pre-refunded municipal bonds			—			9.2			—			—			—			9.2
Revenue municipal bonds			(0.8)			154.8			—			1.0			(0.8)			155.8
U.S. government agency securities			(3.6)			210.0			—			—			(3.6)			210.0
Total		$	(5.8)		$	606.4		$	—		$	1.0		$	(5.8)		$	607.4

Realized Gains and Losses from Sale of Available-for-sale Securities



		Year ended May 31,
In millions		2018			2017			2016
Gross realized gains		$	0.3		$	0.1		$	0.1
Gross realized losses			(0.2)			—			—
Net realized gains		$	0.1		$	0.1		$	0.1

Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity



		May 31, 2018
		Amortized			Fair
In millions		cost			value
Maturity date:
Due in one year or less		$	356.0		$	355.7
Due after one year through three years			807.4			803.6
Due after three years through five years			926.5			915.3
Due after five years			1,053.2			1,030.2
Total		$	3,143.1		$	3,104.8