Paychex 2011 Annual Report Download - page 67

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as of May 31, 2011 and 2010, respectively, were 15 and 23 available-for-sale securities in an unrealized loss
position. The securities in an unrealized loss position were as follows:
In millions
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Less than
twelve months
More than
twelve months Total
May 31, 2011
Type of issue:
General obligation municipal bonds . . $(0.1) $37.3 $— $— $(0.1) $37.3
Pre-refunded municipal bonds ....... — — — — — —
Revenue municipal bonds .......... — 14.4 — — — 14.4
Total ......................... $(0.1) $51.7 $— $— $(0.1) $51.7
In millions
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Less than
twelve months
More than
twelve months Total
May 31, 2010
Type of issue:
General obligation municipal bonds . . $(0.3) $44.0 $— $— $(0.3) $44.0
Pre-refunded municipal bonds ....... — 4.1 — — — 4.1
Revenue municipal bonds .......... (0.1) 25.5 — — (0.1) 25.5
Total ......................... $(0.4) $73.6 $— $— $(0.4) $73.6
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, 2011 were not other-than-temporarily impaired. While $51.7 million of availa-
ble-for-sale securities had fair values that were below amortized cost, the Company believes that it is probable that the
principal and interest will be collected in accordance with contractual terms, and that the unrealized loss on these
securities of $0.1 million was due to changes in interest rates and was not due to increased credit risk or other valuation
concerns. All of the securities in an unrealized loss position as of May 31, 2011 and 2010 held an AA rating or better.
The Company intends to hold these investments until the recovery of their amortized cost basis or maturity, and further
believes that it is more-likely-than-not that it will not be required to sell these investments prior to that time. The
Company’s assessment that an investment is not other-than-temporarily impaired could change in the future due to new
developments or changes in the Company’s strategies or assumptions related to any particular investment.
Realized gains and losses from the sale of available-for-sale securities were as follows:
In millions 2011 2010 2009
Year ended May 31,
Gross realized gains ........................................... $1.3 $3.2 $ 1.2
Gross realized losses ........................................... — — (0.1)
Net realized gains ............................................ $1.3 $3.2 $ 1.1
51
PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)