Annual report pursuant to Section 13 and 15(d)

Funds Held for Clients and Corporate Investments (Tables)

v3.24.2
Funds Held for Clients and Corporate Investments (Tables)
12 Months Ended
May 31, 2024
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, 2024

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

unrealized

 

 

unrealized

 

 

Fair

 

In millions

 

cost

 

 

gains

 

 

losses

 

 

value

 

Type of issue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds held for clients' money market securities and other
   restricted cash equivalents

 

$

 

380.3

 

 

$

 

 

 

$

 

 

 

$

 

380.3

 

AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

 

 

135.7

 

 

 

 

0.1

 

 

 

 

(1.1

)

 

 

 

134.7

 

Corporate bonds

 

 

 

1,400.3

 

 

 

 

1.3

 

 

 

 

(32.8

)

 

 

 

1,368.8

 

Municipal bonds

 

 

 

1,060.1

 

 

 

 

0.2

 

 

 

 

(86.9

)

 

 

 

973.4

 

U.S. government agency and treasury securities

 

 

 

896.0

 

 

 

 

0.1

 

 

 

 

(43.4

)

 

 

 

852.7

 

Variable rate demand notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total AFS securities

 

 

 

3,492.1

 

 

 

 

1.7

 

 

 

 

(164.2

)

 

 

 

3,329.6

 

Other

 

 

 

32.3

 

 

 

 

3.2

 

 

 

 

(1.6

)

 

 

 

33.9

 

Total funds held for clients and corporate investments

 

$

 

3,904.7

 

 

$

 

4.9

 

 

$

 

(165.8

)

 

$

 

3,743.8

 

 

 

 

May 31, 2023

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

unrealized

 

 

unrealized

 

 

Fair

 

In millions

 

cost

 

 

gains

 

 

losses

 

 

value

 

Type of issue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds held for clients' money market securities and other
   restricted cash equivalents

 

$

 

863.1

 

 

$

 

 

 

$

 

 

 

$

 

863.1

 

AFS securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

 

 

88.1

 

 

 

 

 

 

 

 

(1.4

)

 

 

 

86.7

 

Corporate bonds

 

 

 

1,468.3

 

 

 

 

3.7

 

 

 

 

(31.1

)

 

 

 

1,440.9

 

Municipal bonds

 

 

 

1,091.3

 

 

 

 

0.1

 

 

 

 

(105.3

)

 

 

 

986.1

 

U.S. government agency and treasury securities

 

 

 

788.1

 

 

 

 

0.3

 

 

 

 

(41.6

)

 

 

 

746.8

 

Variable rate demand notes

 

 

 

344.1

 

 

 

 

 

 

 

 

 

 

 

 

344.1

 

Total AFS securities

 

 

 

3,779.9

 

 

 

 

4.1

 

 

 

 

(179.4

)

 

 

 

3,604.6

 

Other

 

 

 

30.1

 

 

 

 

1.1

 

 

 

 

(2.9

)

 

 

 

28.3

 

Total funds held for clients and corporate investments

 

$

 

4,673.1

 

 

$

 

5.2

 

 

$

 

(182.3

)

 

$

 

4,496.0

 

Classification of Investments on Consolidated Balance Sheets

The classification of funds held for clients and corporate investments on the Consolidated Balance Sheets is as follows:

 

 

 

May 31,

 

In millions

 

2024

 

 

2023

 

Funds held for clients

 

$

 

3,706.2

 

 

$

 

4,118.8

 

Corporate investments

 

 

 

33.9

 

 

 

 

373.4

 

Long-term corporate investments

 

 

 

3.7

 

 

 

 

3.8

 

Total funds held for clients and corporate investments

 

$

 

3,743.8

 

 

$

 

4,496.0

 

Securities in Unrealized Loss Position AFS securities in an unrealized loss position for which a credit loss has not been recognized were as follows:

 

 

May 31, 2024

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

$

 

(0.4

)

$

 

77.4

 

$

 

(0.7

)

$

 

43.0

 

$

 

(1.1

)

$

 

120.4

 

Corporate bonds

 

 

(8.4

)

 

 

620.8

 

 

 

(24.4

)

 

 

647.8

 

 

 

(32.8

)

 

 

1,268.6

 

Municipal bonds

 

 

(8.0

)

 

 

102.5

 

 

 

(78.9

)

 

 

864.7

 

 

 

(86.9

)

 

 

967.2

 

U.S. government agency and treasury securities

 

 

(6.2

)

 

 

268.2

 

 

 

(37.2

)

 

 

547.2

 

 

 

(43.4

)

 

 

815.4

 

Total

$

 

(23.0

)

$

 

1,068.9

 

$

 

(141.2

)

$

 

2,102.7

 

$

 

(164.2

)

$

 

3,171.6

 

 

 

May 31, 2023

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

$

 

(0.1

)

$

 

54.2

 

$

 

(1.3

)

$

 

23.3

 

$

 

(1.4

)

$

 

77.5

 

Corporate bonds

 

 

(5.9

)

 

 

652.0

 

 

 

(25.2

)

 

 

382.7

 

 

 

(31.1

)

 

 

1,034.7

 

Municipal bonds

 

 

(5.9

)

 

 

86.7

 

 

 

(99.4

)

 

 

889.0

 

 

 

(105.3

)

 

 

975.7

 

U.S. government agency and treasury securities

 

 

(3.3

)

 

 

199.6

 

 

 

(38.3

)

 

 

457.9

 

 

 

(41.6

)

 

 

657.5

 

Total

$

 

(15.2

)

$

 

992.5

 

$

 

(164.2

)

$

 

1,752.9

 

$

 

(179.4

)

$

 

2,745.4

 

 

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

Realized gains and losses from the sale of AFS securities were as follows:

 

 

 

Year ended May 31,

 

In millions

 

2024

 

 

2023

 

 

2022

 

Gross realized gains

 

$

 

 

 

$

 

0.1

 

 

$

 

0.2

 

Gross realized losses

 

 

 

(2.6

)

 

 

 

(9.9

)

 

 

 

0.0

 

Net realized (losses)/gains

 

$

 

(2.6

)

 

$

 

(9.8

)

 

$

 

0.2

 

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

The amortized cost and fair value of AFS securities that had stated maturities as of May 31, 2024 are shown below by expected maturity.

 

 

 

May 31, 2024

 

 

 

Amortized

 

 

Fair

 

In millions

 

cost

 

 

value

 

Maturity date:

 

 

 

 

 

 

 

 

Due in one year or less

 

$

 

211.0

 

 

$

 

207.1

 

Due after one year through three years

 

 

 

1,439.4

 

 

 

 

1,365.2

 

Due after three years through five years

 

 

 

1,452.8

 

 

 

 

1,377.2

 

Due after five years

 

 

 

388.9

 

 

 

 

380.1

 

Total

 

$

 

3,492.1

 

 

$

 

3,329.6