XML 31 R13.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Fair Value Measurements | 3 Months Ended
--- | ---
Aug. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note F: Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting standards related to fair value measurements include a hierarchy for information and valuations used in measuring fair value that is broken down into three levels based on reliability, as follows: • Level 1 valuations are based on quoted prices in active markets for identical instruments that the Company can access at the measurement date. • Level 2 valuations are based on inputs other than quoted prices included in Level 1 that are observable for the instrument, either directly or indirectly, for substantially the full term of the asset or liability including the following: o quoted prices for similar, but not identical, instruments in active markets; o quoted prices for identical or similar instruments in markets that are not active; o inputs other than quoted prices that are observable for the instrument; or o inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement. The carrying values of cash and cash equivalents, restricted cash and restricted cash equivalents, accounts receivable, net of allowance for credit losses, PEO unbilled receivables, net of advance collections, accounts payable and short-term borrowings, when used by the Company, 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 AFS 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:
|  | August 31, 2022 |
|  |  |  |  |  | Quoted |  |  | Significant |  |  |  |  |
|  |  |  |  |  | prices in |  |  | other |  |  | Significant |
|  | Carrying |  |  | active |  |  | observable |  |  | unobservable |
|  | value |  |  | markets |  |  | inputs |  |  | inputs |
In millions |  | (Fair value) |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restricted and unrestricted cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper |  | $ |  | 49.8 |  |  | $ |  | — |  |  | $ |  | 49.8 |  |  | $ |  | — |
Money market securities |  |  |  | 46.1 |  |  |  |  | 46.1 |  |  |  |  | — |  |  |  |  | — |
Total restricted and unrestricted cash equivalents |  | $ |  | 95.9 |  |  | $ |  | 46.1 |  |  | $ |  | 49.8 |  |  | $ |  | — |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities |  | $ |  | 54.5 |  |  | $ |  | — |  |  | $ |  | 54.5 |  |  | $ |  | — |
Corporate bonds |  |  |  | 686.9 |  |  |  |  | — |  |  |  |  | 686.9 |  |  |  |  | — |
Municipal bonds |  |  |  | 1,406.8 |  |  |  |  | — |  |  |  |  | 1,406.8 |  |  |  |  | — |
U.S. government agency and treasury securities |  |  |  | 564.9 |  |  |  |  | — |  |  |  |  | 564.9 |  |  |  |  | — |
Variable rate demand notes |  |  |  | 11.7 |  |  |  |  | — |  |  |  |  | 11.7 |  |  |  |  | — |
Total AFS securities |  | $ |  | 2,724.8 |  |  | $ |  | — |  |  | $ |  | 2,724.8 |  |  | $ |  | — |
Other |  | $ |  | 31.5 |  |  | $ |  | 31.5 |  |  | $ |  | — |  |  | $ |  | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other long-term liabilities |  | $ |  | 31.5 |  |  | $ |  | 31.5 |  |  | $ |  | — |  |  | $ |  | — |
|  | May 31, 2022 |
|  |  |  |  |  | Quoted |  |  | Significant |  |  |  |  |
|  |  |  |  |  | prices in |  |  | other |  |  | Significant |
|  | Carrying |  |  | active |  |  | observable |  |  | unobservable |
|  | value |  |  | markets |  |  | inputs |  |  | inputs |
In millions |  | (Fair value) |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restricted and unrestricted cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper |  | $ |  | 5.2 |  |  | $ |  | — |  |  | $ |  | 5.2 |  |  | $ |  | — |
Time deposits |  |  |  | 187.9 |  |  |  |  | — |  |  |  |  | 187.9 |  |  |  |  | — |
VRDNs |  |  |  | 10.0 |  |  |  |  | — |  |  |  |  | 10.0 |  |  |  |  | — |
Money market securities |  | $ |  | 16.1 |  |  | $ |  | 16.1 |  |  | $ |  | — |  |  | $ |  | — |
Total restricted and unrestricted cash equivalents |  | $ |  | 219.2 |  |  | $ |  | 16.1 |  |  | $ |  | 203.1 |  |  | $ |  | — |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities |  | $ |  | 67.2 |  |  | $ |  | — |  |  | $ |  | 67.2 |  |  | $ |  | — |
Corporate bonds |  |  |  | 682.1 |  |  |  |  | — |  |  |  |  | 682.1 |  |  |  |  | — |
Municipal bonds |  |  |  | 1,485.8 |  |  |  |  | — |  |  |  |  | 1,485.8 |  |  |  |  | — |
U.S. government agency and treasury securities |  |  |  | 548.5 |  |  |  |  | — |  |  |  |  | 548.5 |  |  |  |  | — |
VRDNs |  |  |  | 1,245.6 |  |  |  |  | — |  |  |  |  | 1,245.6 |  |  |  |  | — |
Total AFS securities |  | $ |  | 4,029.2 |  |  | $ |  | — |  |  | $ |  | 4,029.2 |  |  | $ |  | — |
Other |  | $ |  | 30.0 |  |  | $ |  | 30.0 |  |  | $ |  | — |  |  | $ |  | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other long-term liabilities |  | $ |  | 29.9 |  |  | $ |  | 29.9 |  |  | $ |  | — |  |  | $ |  | — |
In determining the fair value of its assets and liabilities, the Company predominately uses the market approach. Money market securities, which are cash equivalents, are considered Level 1 investments as they are valued based on quoted market prices in active markets. Cash equivalents also include commercial paper which is considered a Level 2 investment as it is valued based on similar, but not identical, instruments in active markets. AFS securities, including asset-backed securities, corporate bonds, municipal bonds, U.S. government agency securities, and VRDNs, when held by the Company, are included in Level 2 and are valued utilizing inputs obtained from an independent pricing service. To determine the fair value of the Company’s Level 2 AFS securities, the independent pricing service uses a variety of inputs, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, new issue data, and monthly payment information. The Company has not adjusted the prices obtained from the independent pricing service because it believes that they are appropriately valued. Assets included as other are mutual fund investments, consisting of participants’ eligible deferral contributions under the Company’s non-qualified and unfunded deferred compensation plans. The related liability is reported as other long-term liabilities. The mutual funds are considered Level 1 investments as they are valued based on quoted market prices in active markets. The Company’s long-term borrowings are accounted for on a historical cost basis. As of August 31, 2022 and May 31, 2022, the fair value of long-term borrowings, net of debt issuance costs was $396.0 million and $404.1 million for the Senior Notes, Series A, respectively, and $392.4 million and $402.5 million for the Senior Notes, Series B, respectively. The Company’s long-term borrowings are not traded in active markets, and as a result, its fair values were estimated using a market approach employing Level 2 valuation inputs, including borrowing rates the Company believes are currently available based on loans with similar terms and maturities. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration