Company Quick10K Filing
Paychex
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 362 $31,588
10-Q 2019-10-04 Quarter: 2019-08-31
10-K 2019-07-24 Annual: 2019-05-31
10-Q 2019-03-29 Quarter: 2019-02-28
10-Q 2018-12-21 Quarter: 2018-11-30
10-Q 2018-10-05 Quarter: 2018-08-31
10-K 2018-07-20 Annual: 2018-05-31
10-Q 2018-03-28 Quarter: 2018-02-28
10-Q 2017-12-21 Quarter: 2017-11-30
10-Q 2017-10-06 Quarter: 2017-08-31
10-K 2017-07-21 Annual: 2017-05-31
10-Q 2017-03-31 Quarter: 2017-02-28
10-Q 2016-12-23 Quarter: 2016-11-30
10-Q 2016-09-30 Quarter: 2016-08-31
10-K 2016-07-22 Annual: 2016-05-31
10-Q 2016-03-30 Quarter: 2016-02-29
10-Q 2015-12-23 Quarter: 2015-11-30
10-Q 2015-09-30 Quarter: 2015-08-31
10-K 2015-07-21 Annual: 2015-05-31
10-Q 2015-03-25 Quarter: 2015-02-28
10-Q 2014-12-19 Quarter: 2014-11-30
10-Q 2014-09-24 Quarter: 2014-08-31
10-K 2014-07-22 Annual: 2014-05-31
10-Q 2014-03-26 Quarter: 2014-02-28
10-Q 2013-09-30 Quarter: 2013-08-31
10-Q 2013-03-27 Quarter: 2013-02-28
10-Q 2012-12-20 Quarter: 2012-11-30
10-Q 2012-09-24 Quarter: 2012-08-31
10-K 2012-07-20 Annual: 2012-05-31
10-Q 2012-03-28 Quarter: 2012-02-29
10-Q 2011-12-20 Quarter: 2011-11-30
10-Q 2011-09-27 Quarter: 2011-08-31
10-K 2011-07-15 Annual: 2011-05-31
10-Q 2011-03-23 Quarter: 2011-02-28
10-Q 2010-12-20 Quarter: 2010-11-30
10-Q 2010-09-27 Quarter: 2010-08-31
10-K 2010-07-16 Annual: 2010-05-31
10-Q 2010-03-24 Quarter: 2010-02-28
8-K 2019-12-18 Earnings, Exhibits
8-K 2019-10-17
8-K 2019-10-02 Earnings, Exhibits
8-K 2019-07-31 Enter Agreement
8-K 2019-07-10 Officers
8-K 2019-06-26 Earnings, Exhibits
8-K 2019-05-03 Amend Bylaw, Other Events, Exhibits
8-K 2019-03-27 Earnings, Exhibits
8-K 2019-01-09 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-12-19 Earnings, Exhibits
8-K 2018-11-26 Enter Agreement, Regulation FD, Exhibits
8-K 2018-10-11
8-K 2018-10-02 Earnings, Exhibits
8-K 2018-06-27 Regulation FD, Exhibits
8-K 2018-06-27 Earnings, Exhibits
8-K 2018-04-26 Officers, Exhibits
8-K 2018-03-26 Earnings, Exhibits
8-K 2018-03-01 Regulation FD, Exhibits
PAYX 2019-08-31
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Part II. Other Information
EX-10.1 payx-20190831xex10_1.htm
EX-10.2 payx-20190831xex10_2.htm
EX-10.3 payx-20190831xex10_3.htm
EX-10.4 payx-20190831xex10_4.htm
EX-10.5 payx-20190831xex10_5.htm
EX-31.1 payx-20190831xex31_1.htm
EX-31.2 payx-20190831xex31_2.htm
EX-32.1 payx-20190831xex32_1.htm
EX-32.2 payx-20190831xex32_2.htm

Paychex Earnings 2019-08-31

PAYX 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
PAYX 31,588 8,676 6,056 3,772 0 0 533 31,453 0% 59.0 0%
ROL 11,997 1,730 978 1,885 957 0 149 11,898 51% 80.1 0%
ALLE 10,311 5,950 2,658 2,800 1,208 541 665 11,590 43% 17.4 9%
URI 10,192 19,047 15,569 8,829 3,608 1,088 1,741 20,817 41% 12.0 6%
AER 5,761 43,209 34,328 0 0 0 0 33,853 0%
ADT 4,517 16,977 13,087 4,861 0 -556 1,388 14,284 0% 10.3 -3%
AL 4,457 20,484 15,184 1,838 0 551 1,637 17,166 0% 10.5 3%
AAN 4,201 3,180 1,331 3,926 445 204 280 4,101 11% 14.6 6%
JOBS 3,731 12,238 4,420 0 0 0 0 1,757 0%
FTDR 3,675 1,179 1,457 1,315 633 139 260 4,237 48% 16.3 12%

payx-20190831x10q
false--05-31Q120200000723531YesYesP1YP2YP3Y0000723531payx:AuthorizedInMay2019Member2019-05-012019-05-310000723531srt:MaximumMemberpayx:AuthorizedInMay2019Member2019-05-310000723531payx:AuthorizedInMay2019Member2019-06-012019-08-310000723531payx:AuthorizedInJuly2016Member2018-06-012018-08-310000723531us-gaap:CommonStockMember2019-06-012019-08-310000723531us-gaap:CommonStockMember2018-06-012018-08-310000723531us-gaap:RetainedEarningsMember2019-08-310000723531us-gaap:AdditionalPaidInCapitalMember2019-08-310000723531us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-08-310000723531us-gaap:RetainedEarningsMember2019-05-310000723531us-gaap:AdditionalPaidInCapitalMember2019-05-310000723531us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-05-310000723531us-gaap:RetainedEarningsMember2018-08-310000723531us-gaap:AdditionalPaidInCapitalMember2018-08-310000723531us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-08-310000723531us-gaap:RetainedEarningsMember2018-05-310000723531us-gaap:AdditionalPaidInCapitalMember2018-05-310000723531us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-05-310000723531us-gaap:RevolvingCreditFacilityMember2019-06-012019-08-3100007235312021-06-012019-08-3100007235312020-06-012019-08-3100007235312019-06-012019-08-310000723531payx:PeoAndInsuranceServicesMember2019-06-012019-08-310000723531payx:ManagementSolutionsMember2019-06-012019-08-310000723531payx:PeoAndInsuranceServicesMember2018-06-012018-08-310000723531payx:ManagementSolutionsMember2018-06-012018-08-310000723531us-gaap:TechnologyEquipmentMember2019-08-310000723531us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2019-08-310000723531us-gaap:LeaseholdImprovementsMember2019-08-310000723531us-gaap:LandAndLandImprovementsMember2019-08-310000723531us-gaap:FurnitureAndFixturesMember2019-08-310000723531us-gaap:BuildingAndBuildingImprovementsMember2019-08-310000723531payx:ConstructionInProgress1Member2019-08-310000723531us-gaap:TechnologyEquipmentMember2019-05-310000723531us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2019-05-310000723531us-gaap:LeaseholdImprovementsMember2019-05-310000723531us-gaap:LandAndLandImprovementsMember2019-05-310000723531us-gaap:FurnitureAndFixturesMember2019-05-310000723531us-gaap:BuildingAndBuildingImprovementsMember2019-05-310000723531payx:ConstructionInProgress1Member2019-05-310000723531us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-012019-08-310000723531us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-012018-08-310000723531us-gaap:AccountingStandardsUpdate201602Member2019-06-012019-06-010000723531us-gaap:AccountingStandardsUpdate201618Member2018-06-012018-08-310000723531payx:PaychexOfNewYorkLlcMemberpayx:JpmOneBillionCreditFacilityJuly312019Memberpayx:JpMorganChaseBankNaMember2019-08-310000723531payx:PaychexOfNewYorkLlcMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-08-310000723531payx:PaychexAdvanceLlcMemberpayx:PncOneHundredFiftyMillionCreditFacilityMemberpayx:PncBankNationalAssociationMember2019-08-310000723531payx:PaychexOfNewYorkLlcMemberpayx:JpMorganChaseBankNaMember2019-08-310000723531payx:PaychexOfNewYorkLlcMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityJuly312019Member2019-07-310000723531payx:PaychexOfNewYorkLlcMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMember2015-08-050000723531payx:PaychexOfNewYorkLlcMemberpayx:JpmOneBillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-06-012019-08-310000723531payx:PaychexOfNewYorkLlcMemberpayx:JpmOneBillionCreditFacilityJuly312019Memberpayx:JpMorganChaseBankNaMember2019-06-012019-08-310000723531payx:PaychexOfNewYorkLlcMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-06-012019-08-310000723531payx:PaychexAdvanceLlcMemberpayx:PncOneHundredFiftyMillionCreditFacilityMemberpayx:PncBankNationalAssociationMember2019-06-012019-08-310000723531srt:MinimumMemberus-gaap:StandbyLettersOfCreditMember2019-06-012019-08-310000723531srt:MaximumMemberus-gaap:StandbyLettersOfCreditMember2019-06-012019-08-310000723531payx:FourOvernightBasisMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMemberpayx:JpMorganChaseBankNaMemberus-gaap:SubsequentEventMember2019-09-012019-09-010000723531us-gaap:RevolvingCreditFacilityMemberpayx:PncOneHundredFiftyMillionCreditFacilityMemberpayx:PncBankNationalAssociationMember2019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:PncOneHundredFiftyMillionCreditFacilityMemberpayx:PncBankNationalAssociationMember2019-05-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-05-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-05-310000723531us-gaap:StandbyLettersOfCreditMember2019-08-310000723531us-gaap:StandbyLettersOfCreditMember2019-05-310000723531us-gaap:StandbyLettersOfCreditMember2018-08-310000723531srt:MinimumMember2019-08-310000723531srt:MaximumMember2019-08-310000723531us-gaap:OtherIntangibleAssetsMember2019-08-310000723531us-gaap:CustomerListsMember2019-08-310000723531us-gaap:OtherIntangibleAssetsMember2019-05-310000723531us-gaap:CustomerListsMember2019-05-310000723531srt:WeightedAverageMemberpayx:OasisOutsourcingGroupHoldingsL.p.Member2018-12-202018-12-200000723531payx:PaychexOfNewYorkLlcMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityJuly312019Member2019-07-312019-07-310000723531payx:PaychexOfNewYorkLlcMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMember2015-08-052015-08-050000723531payx:SeriesSeniorNotesMemberus-gaap:SeniorNotesMember2019-08-310000723531payx:SeriesBSeniorNotesMemberus-gaap:SeniorNotesMember2019-08-310000723531us-gaap:SeniorNotesMember2019-08-310000723531payx:SeriesSeniorNotesMemberus-gaap:SeniorNotesMember2019-05-310000723531payx:SeriesBSeniorNotesMemberus-gaap:SeniorNotesMember2019-05-310000723531us-gaap:SeniorNotesMember2019-05-310000723531payx:CompanyAndPaychexOfNewYorkMemberpayx:SeriesSeniorNotesMemberus-gaap:SeniorNotesMember2019-03-130000723531payx:CompanyAndPaychexOfNewYorkMemberpayx:SeriesBSeniorNotesMemberus-gaap:SeniorNotesMember2019-03-130000723531payx:CompanyAndPaychexOfNewYorkMemberus-gaap:SeniorNotesMember2019-03-130000723531srt:EuropeMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-06-012019-08-310000723531srt:EuropeMemberpayx:LongLivedAssetsMemberus-gaap:GeographicConcentrationRiskMember2019-06-012019-08-310000723531srt:EuropeMemberpayx:LongLivedAssetsMemberus-gaap:GeographicConcentrationRiskMember2018-06-012019-05-310000723531srt:EuropeMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2018-06-012018-08-310000723531us-gaap:CommonStockMember2019-08-310000723531us-gaap:CommonStockMember2019-05-310000723531us-gaap:CommonStockMember2018-08-310000723531us-gaap:CommonStockMember2018-05-310000723531us-gaap:AccountingStandardsUpdate201618Member2018-08-310000723531us-gaap:AccountingStandardsUpdate201618Member2018-05-310000723531us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:MoneyMarketFundsMember2019-08-310000723531us-gaap:CommercialPaperMember2019-08-310000723531us-gaap:BankTimeDepositsMember2019-08-310000723531us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:MoneyMarketFundsMember2019-05-310000723531us-gaap:CommercialPaperMember2019-05-310000723531payx:CostsToObtainContractMember2019-08-310000723531payx:CostsToFulfillContractMember2019-08-310000723531payx:CostsToObtainContractMember2019-05-310000723531payx:CostsToFulfillContractMember2019-05-310000723531payx:CostsToObtainContractMember2018-08-310000723531payx:CostsToFulfillContractMember2018-08-310000723531payx:CostsToObtainContractMember2018-05-310000723531payx:CostsToFulfillContractMember2018-05-310000723531payx:OasisOutsourcingGroupHoldingsL.p.Member2019-06-012019-08-310000723531us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531payx:RevenueMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531payx:PreRefundedMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-08-310000723531us-gaap:VariableRateDemandObligationMember2019-08-310000723531us-gaap:USStatesAndPoliticalSubdivisionsMember2019-08-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-08-310000723531us-gaap:CorporateDebtSecuritiesMember2019-08-310000723531us-gaap:AssetBackedSecuritiesMember2019-08-310000723531payx:RevenueMunicipalBondsMember2019-08-310000723531payx:PreRefundedMunicipalBondsMember2019-08-310000723531us-gaap:VariableRateDemandObligationMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531payx:RevenueMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531payx:PreRefundedMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-05-310000723531us-gaap:VariableRateDemandObligationMember2019-05-310000723531us-gaap:USStatesAndPoliticalSubdivisionsMember2019-05-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-05-310000723531us-gaap:CorporateDebtSecuritiesMember2019-05-310000723531us-gaap:AssetBackedSecuritiesMember2019-05-310000723531payx:RevenueMunicipalBondsMember2019-05-310000723531payx:PreRefundedMunicipalBondsMember2019-05-310000723531us-gaap:VariableRateDemandObligationMember2019-08-310000723531us-gaap:VariableRateDemandObligationMember2019-05-310000723531us-gaap:AssetBackedSecuritiesMember2019-05-310000723531us-gaap:USStatesAndPoliticalSubdivisionsMember2019-08-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-08-310000723531us-gaap:CorporateDebtSecuritiesMember2019-08-310000723531us-gaap:AssetBackedSecuritiesMember2019-08-310000723531payx:RevenueMunicipalBondsMember2019-08-310000723531payx:PreRefundedMunicipalBondsMember2019-08-310000723531us-gaap:USStatesAndPoliticalSubdivisionsMember2019-05-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-05-310000723531us-gaap:CorporateDebtSecuritiesMember2019-05-310000723531payx:RevenueMunicipalBondsMember2019-05-310000723531payx:PreRefundedMunicipalBondsMember2019-05-3100007235312018-05-310000723531us-gaap:AccountingStandardsUpdate201602Member2019-06-010000723531us-gaap:RetainedEarningsMember2019-06-012019-08-310000723531us-gaap:AdditionalPaidInCapitalMember2019-06-012019-08-310000723531us-gaap:RetainedEarningsMember2018-06-012018-08-310000723531us-gaap:AdditionalPaidInCapitalMember2018-06-012018-08-3100007235312018-08-310000723531payx:OasisOutsourcingGroupHoldingsL.p.Member2018-12-202018-12-200000723531srt:ScenarioForecastMemberpayx:HrOutsourcingIncMember2019-07-012020-06-300000723531srt:ScenarioForecastMemberpayx:OasisAndHroiMember2019-06-012020-05-310000723531srt:ScenarioForecastMember2019-06-012020-05-310000723531payx:HrOutsourcingIncMemberus-gaap:SubsequentEventMember2018-10-012019-09-300000723531payx:HrOutsourcingIncMember2018-07-012019-06-300000723531payx:OasisOutsourcingGroupHoldingsL.p.Member2018-06-012019-05-3100007235312018-06-012019-05-310000723531payx:HrOutsourcingIncMember2017-10-012018-09-300000723531srt:ScenarioForecastMember2019-01-012019-12-3100007235312018-01-012018-12-310000723531payx:TenDaysMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-09-012019-09-010000723531payx:EightDaysMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-06-012019-08-310000723531srt:MinimumMember2019-06-012019-08-310000723531srt:MaximumMember2019-06-012019-08-310000723531payx:EightDaysMemberus-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-06-012019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:PncOneHundredFiftyMillionCreditFacilityMemberpayx:PncBankNationalAssociationMember2019-06-012019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-06-012019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2019-06-012019-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:PncOneHundredFiftyMillionCreditFacilityMemberpayx:PncBankNationalAssociationMember2018-06-012018-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmOneBillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2018-06-012018-08-310000723531us-gaap:RevolvingCreditFacilityMemberpayx:JpmFiveHundredMillionCreditFacilityMemberpayx:JpMorganChaseBankNaMember2018-06-012018-08-310000723531payx:SeriesSeniorNotesMemberus-gaap:SeniorNotesMember2019-06-012019-08-310000723531payx:SeriesBSeniorNotesMemberus-gaap:SeniorNotesMember2019-06-012019-08-310000723531payx:SeriesSeniorNotesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-08-310000723531payx:SeriesBSeniorNotesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-08-310000723531us-gaap:FairValueMeasurementsNonrecurringMember2019-08-310000723531payx:SeriesSeniorNotesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-05-310000723531payx:SeriesBSeniorNotesMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:SeniorNotesMember2019-05-310000723531us-gaap:FairValueMeasurementsNonrecurringMember2019-05-3100007235312018-06-012018-08-310000723531payx:CostsToObtainContractMember2019-06-012019-08-310000723531payx:CostsToFulfillContractMember2019-06-012019-08-310000723531payx:CostsToObtainContractMember2018-06-012018-08-310000723531payx:CostsToFulfillContractMember2018-06-012018-08-310000723531payx:OasisOutsourcingGroupHoldingsL.p.Member2018-12-200000723531srt:MinimumMemberus-gaap:VariableRateDemandObligationMember2019-06-012019-08-310000723531srt:MaximumMemberus-gaap:VariableRateDemandObligationMember2019-06-012019-08-310000723531us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-06-012019-08-3100007235312019-08-3100007235312019-05-310000723531us-gaap:TradeAccountsReceivableMember2019-08-310000723531us-gaap:FinanceReceivablesMember2019-08-310000723531us-gaap:TradeAccountsReceivableMember2019-05-310000723531us-gaap:FinanceReceivablesMember2019-05-3100007235312019-09-3000007235312019-06-012019-08-31payx:segmentiso4217:USDxbrli:sharespayx:securitypayx:itemxbrli:pureiso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549 

_________________________________________

FORM 10-Q

_________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended August 31, 2019

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From __________to __________

Commission file number 0-11330

_________________________________________

PAYCHEX, INC.

911 Panorama Trail South

Rochester, NY 14625-2396

(585) 385-6666

A Delaware Corporation

IRS Employer Identification Number: 16-1124166

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange of which registered

Common Stock, $0.01 par value

PAYX

NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer x

Accelerated Filer    

Non-Accelerated Filer    

Smaller Reporting Company  

Emerging Growth Company   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of September 30, 2019, 357,944,189 shares of the registrant’s common stock, $.01 par value, were outstanding.


PAYCHEX, INC.

Table of Contents

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

1

Consolidated Statements of Income and Comprehensive Income

1

Consolidated Balance Sheets

2

Consolidated Statements of Stockholders’ Equity

3

Consolidated Statements of Cash Flows

4

Notes to Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

Item 3.

Quantitative and Qualitative Disclosures of Market Risk

39

Item 4.

Controls and Procedures

39

PART II. OTHER INFORMATION

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

40

Item 6.

Exhibits

41

Signatures

42

 


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

In millions, except per share amounts

For the three months ended

August 31,

2019

2018

Revenue:

Management Solutions

$

724.5

$

687.7

PEO and Insurance Services

247.0

158.0

Total service revenue

971.5

845.7

Interest on funds held for clients

20.5

17.1

Total revenue

992.0

862.8

Expenses:

Operating expenses

325.4

265.5

Selling, general and administrative expenses

317.5

277.0

Total expenses

642.9

542.5

Operating income

349.1

320.3

Other (expense)/income, net

(4.8)

2.3

Income before income taxes

344.3

322.6

Income taxes

80.1

79.0

Net income

$

264.2

$

243.6

Other comprehensive income, net of tax

26.4

0.4

Comprehensive income

$

290.6

$

244.0

Basic earnings per share

$

0.74

$

0.68

Diluted earnings per share

$

0.73

$

0.67

Weighted-average common shares outstanding

358.6

359.1

Weighted-average common shares outstanding,
    assuming dilution

361.5

361.5

See Notes to Consolidated Financial Statements.

1


PAYCHEX, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

In millions, except per share amounts

August 31,

May 31,

2019

2019

Assets

Cash and cash equivalents

$

586.4

$

673.6

Restricted cash

55.8

50.6

Corporate investments

40.9

39.0

Interest receivable

27.1

27.4

Accounts receivable, net of allowance for doubtful accounts

425.1

420.5

PEO unbilled receivables, net of advance collections

409.2

406.3

Prepaid income taxes

22.6

Prepaid expenses and other current assets

242.3

233.9

Current assets before funds held for clients

1,786.8

1,873.9

Funds held for clients

3,769.1

3,803.8

Total current assets

5,555.9

5,677.7

Long-term restricted cash

1.9

6.5

Long-term corporate investments

10.3

10.2

Property and equipment, net of accumulated depreciation

403.4

408.7

Operating lease right-of-use assets, net of accumulated amortization

112.8

Intangible assets, net of accumulated amortization

379.5

399.1

Goodwill

1,783.1

1,782.6

Long-term deferred costs

362.7

366.3

Other long-term assets

28.6

24.9

Total assets

$

8,638.2

$

8,676.0

Liabilities

Accounts payable

$

61.7

$

75.9

Accrued corporate compensation and related items

84.5

146.4

Accrued worksite employee compensation and related items

544.1

578.6

Accrued income taxes

49.0

Short-term borrowings

56.5

Deferred revenue

41.3

40.3

Other current liabilities

270.5

219.5

Current liabilities before client fund obligations

1,107.6

1,060.7

Client fund obligations

3,715.9

3,784.3

Total current liabilities

4,823.5

4,845.0

Accrued income taxes

29.7

27.3

Deferred income taxes

227.6

223.1

Long-term borrowings, net of debt issuance costs

796.5

796.4

Operating lease liabilities

93.8

13.0

Other long-term liabilities

147.8

151.7

Total liabilities

6,118.9

6,056.5

Commitments and contingencies — Note N

 

 

Stockholders’ equity

Common stock, $0.01 par value; Authorized: 600.0 shares;
   Issued and outstanding: 357.9 shares as of August 31, 2019
   and 359.3 shares as of May 31, 2019

3.6

3.6

Additional paid-in capital

1,224.0

1,206.3

Retained earnings

1,265.2

1,409.5

Accumulated other comprehensive income

26.5

0.1

Total stockholders’ equity

2,519.3

2,619.5

Total liabilities and stockholders’ equity

$

8,638.2

$

8,676.0

See Notes to Consolidated Financial Statements. 

2


PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

In millions, except per share amounts

For the three months ended August 31, 2019

Accumulated

Additional

other

Common stock

paid-in

Retained

comprehensive

Shares

Amount

capital

earnings

income/(loss)

Total

Balance as of May 31, 2019

359.3

$

3.6

$

1,206.3

$

1,409.5

$

0.1

$

2,619.5

Net income

264.2

264.2

Unrealized gains on securities, net of reclassification adjustment and tax

25.4

25.4

Cash dividends declared ($0.62 per share)

(222.0)

(222.0)

Repurchases of common shares

(2.0)

(3.7)

(168.2)

(171.9)

Stock-based compensation costs

10.5

10.5

Foreign currency translation adjustment

1.0

1.0

Activity related to equity-based plans

0.6

10.9

(18.3)

(7.4)

Balance as of August 31, 2019

357.9

$

3.6

$

1,224.0

$

1,265.2

$

26.5

$

2,519.3

For the three months ended August 31, 2018

Balance as of May 31, 2018

359.0

$

3.6

$

1,126.8

$

1,262.6

$

(36.2)

$

2,356.8

Net income

243.6

243.6

Unrealized gains on securities, net of reclassification adjustment and tax

2.1

2.1

Cash dividends declared ($0.56 per share)

(201.4)

(201.4)

Repurchases of common shares

(0.5)

(0.8)

(32.0)

(32.8)

Stock-based compensation costs

10.9

10.9

Foreign currency translation adjustment

(1.7)

(1.7)

Activity related to equity-based plans

0.5

14.2

(4.7)

9.5

Balance as of August 31, 2018

359.0

$

3.6

$

1,151.1

$

1,268.1

$

(35.8)

$

2,387.0

See Notes to Consolidated Financial Statements.

3


PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

In millions

For the three months ended

August 31,

2019

2018 (1)

Operating activities

Net income

$

264.2

$

243.6

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization on property and equipment and intangible assets

52.9

35.9

Amortization of premiums and discounts on available-for-sale securities, net

10.0

14.4

Amortization of deferred contract costs

46.0

44.6

Stock-based compensation costs

10.5

10.9

(Benefit)/provision for deferred income taxes

(3.7)

2.6

Provision for allowance for doubtful accounts

2.3

0.3

Net realized (gains)/losses on sales of available-for-sale securities

(0.9)

0.1

Changes in operating assets and liabilities:

Interest receivable

0.3

3.1

Accounts receivable and PEO unbilled receivables, net

(9.8)

(43.0)

Prepaid expenses and other current assets

13.8

15.2

Accounts payable and other current liabilities

(39.6)

(15.2)

Deferred costs

(41.9)

(38.4)

Net change in other long-term assets and liabilities

(8.4)

(0.4)

Net change in operating lease right-of-use assets and liabilities

(0.9)

Net cash provided by operating activities

294.8

273.7

Investing activities

Purchases of available-for-sale securities

(8,289.3)

(11,115.8)

Proceeds from sales and maturities of available-for-sale securities

8,862.1

11,297.0

Purchases of property and equipment

(26.4)

(24.4)

Purchases of other assets

(1.7)

(0.8)

Net cash provided by investing activities

544.7

156.0

Financing activities