Paychex 2016 Annual Report Download - page 69

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Classification of investments on the Consolidated Balance Sheets is as follows:
May 31,
In millions 2016 2015
Funds held for clients .............................................. $3,997.5 $4,273.4
Corporate investments .............................................. 220.6 366.6
Long-term corporate investments ..................................... 441.1 399.8
Total funds held for clients and corporate investments ................. $4,659.2 $5,039.8
The Company’s available-for-sale securities reflected a net unrealized gain of $47.6 million as of May 31,
2016 compared with a net unrealized gain of $13.6 million as of May 31, 2015. Included in the net unrealized
gain total as of May 31, 2016 and May 31, 2015, there were 63 and 280 available-for-sale securities in an
unrealized loss position, respectively. The available-for-sale securities in an unrealized loss position were as
follows:
May 31, 2016
Securities in an unrealized
loss position for less than
twelve months
Securities in an unrealized
loss position for 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:
Corporate bonds ............. $(0.1) $ 14.7 $ — $ — $(0.1) $ 14.7
General obligation municipal
bonds ................... (0.1) 48.9 — 2.8 (0.1) 51.7
Pre-refunded municipal
bonds ................... — 5.7 — — — 5.7
Revenue municipal bonds ..... — 20.7 (0.2) 11.7 (0.2) 32.4
U.S. government agency
securities ................. (0.3) 51.1 — — (0.3) 51.1
Total ...................... $(0.5) $141.1 $(0.2) $14.5 $(0.7) $155.6
May 31, 2015
Securities in an unrealized
loss position for less than
twelve months
Securities in an unrealized
loss position for 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 ................... $(3.8) $535.1 $(0.5) $26.3 $(4.3) $561.4
Revenue municipal bonds ..... (3.2) 361.6 — — (3.2) 361.6
Total ...................... $(7.0) $896.7 $(0.5) $26.3 $(7.5) $923.0
The Company regularly reviews its investment portfolios to determine if any investment is other-than-
temporarily impaired due to changes in credit risk or other potential valuation concerns. The Company believes
that the investments held as of May 31, 2016 that had unrealized losses of $0.7 million were not other-than-
temporarily impaired. The Company believes that it is probable that the principal and interest will be collected in
accordance with contractual terms, and that the unrealized losses on these securities were due to changes in
51