Paychex 2014 Annual Report Download - page 73

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The carrying values of cash and cash equivalents, including money market securities, accounts receivable,
net of allowance for doubtful accounts, and accounts payable approximate fair value due to the short maturities
of these instruments. Marketable securities included in funds held for clients and corporate investments consist
primarily of securities classified as available-for-sale and are recorded at fair value on a recurring basis.
The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:
May 31, 2014
In millions
Carrying
value
(Fair value)
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets:
Cash equivalents:
Commercial paper ........................ $ 6.0 $ — $ 6.0 $—
General obligation municipal bonds .......... 10.9 — 10.9 —
Pre-refunded municipal bonds ............... 31.2 — 31.2 —
Revenue municipal bonds .................. 17.7 — 17.7 —
Total cash equivalents ..................... $ 65.8 $ — $ 65.8 $—
Available-for-sale securities:
General obligation municipal bonds .......... $1,628.5 $ — $1,628.5 $—
Pre-refunded municipal bonds ............... 142.8 — 142.8 —
Revenue municipal bonds .................. 867.8 — 867.8 —
Variable rate demand notes ................. 752.3 — 752.3 —
Total available-for-sale securities ............ $3,391.4 $ — $3,391.4 $—
Other ..................................... $ 12.3 $12.3 $ — $—
Liabilities:
Other long-term liabilities .................... $ 12.3 $12.3 $ — $—
May 31, 2013
In millions
Carrying
value
(Fair value)
Quoted
prices in
active
markets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets:
Available-for-sale securities:
General obligation municipal bonds .......... $1,456.8 $ — $1,456.8 $—
Pre-refunded municipal bonds ............... 203.9 — 203.9 —
Revenue municipal bonds .................. 754.0 — 754.0 —
Variable rate demand notes ................. 1,276.7 — 1,276.7 —
Total available-for-sale securities ............ $3,691.4 $ — $3,691.4 $—
Other ..................................... $ 10.7 $10.7 $ — $—
Liabilities:
Other long-term liabilities .................... $ 10.7 $10.7 $ — $—
In determining the fair value of its assets and liabilities, the Company predominately uses the market
approach. Commercial paper is included in Level 2 because it may not trade on a daily basis. Available-for-sale
55