UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________
FORM
_________________________________________
For the quarterly period ended
OR
For the Transition Period from __________to __________
Commission file number
__________________________________________________
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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.
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).
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.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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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
As of February 28, 2022,
PAYCHEX, INC.
Table of Contents
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
In millions, except per share amounts
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For the three months ended |
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For the nine months ended |
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February 28, |
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February 28, |
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2022 |
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2021 |
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2022 |
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2021 |
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Revenue: |
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Management Solutions |
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$ |
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$ |
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$ |
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$ |
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PEO and Insurance Solutions |
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Total service revenue |
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Interest on funds held for clients |
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Total revenue |
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Expenses: |
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Cost of service revenue |
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Selling, general and administrative expenses |
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Total expenses |
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Operating income |
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Other expense, net |
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( |
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( |
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Income before income taxes |
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Income taxes |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive (loss)/income, net of tax |
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( |
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Comprehensive income |
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$ |
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$ |
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$ |
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$ |
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Basic earnings per share |
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$ |
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$ |
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$ |
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$ |
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Diluted earnings per share |
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$ |
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$ |
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$ |
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$ |
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Weighted-average common shares outstanding |
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Weighted-average common shares outstanding, assuming dilution |
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See Notes to Consolidated Financial Statements.
1
PAYCHEX, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
In millions, except per share amounts
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February 28, |
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May 31, |
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2022 |
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2021 |
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Assets |
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Cash and cash equivalents |
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$ |
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$ |
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Restricted cash |
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Corporate investments |
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Interest receivable |
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Accounts receivable, net of allowance for credit losses |
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PEO unbilled receivables, net of advance collections |
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Prepaid income taxes |
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Prepaid expenses and other current assets |
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Current assets before funds held for clients |
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Funds held for clients |
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Total current assets |
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Long-term restricted cash |
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Long-term corporate investments |
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Property and equipment, net of accumulated depreciation |
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Operating lease right-of-use assets, net of accumulated amortization |
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Intangible assets, net of accumulated amortization |
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Goodwill |
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Long-term deferred costs |
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Other long-term assets |
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Total assets |
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$ |
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$ |
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Liabilities |
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Accounts payable |
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$ |
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$ |
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Accrued corporate compensation and related items |
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Accrued worksite employee compensation and related items |
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Short-term borrowings |
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Deferred revenue |
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Other current liabilities |
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Current liabilities before client fund obligations |
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Client fund obligations |
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Total current liabilities |
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Accrued income taxes |
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Deferred income taxes |
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Long-term borrowings, net of debt issuance costs |
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Operating lease liabilities |
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Other long-term liabilities |
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Total liabilities |
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Stockholders’ equity |
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Common stock, $ |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive (loss)/income |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
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$ |
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$ |
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See Notes to Consolidated Financial Statements.
2
PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
In millions, except per share amounts
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For the nine months ended February 28, 2022 |
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Accumulated |
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Additional |
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other |
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Common stock |
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paid-in |
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Retained |
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comprehensive |
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Shares |
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Amount |
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capital |
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earnings |
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(loss)/income |
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Total |
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Balance as of May 31, 2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Unrealized losses on securities, net of $ |
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— |
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— |
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— |
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— |
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( |
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( |
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Reclassification adjustment for realized gains on securities, net of $ - million in tax expense (1) |
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— |
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— |
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— |
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— |
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( |
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( |
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Cash dividends declared ($ |
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— |
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— |
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— |
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( |
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— |
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( |
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Repurchases of common shares (2) |
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— |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation costs |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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( |
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( |
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Activity related to equity-based plans |
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( |
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— |
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Balance as of February 28, 2022 |
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$ |
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$ |
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$ |
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$ |
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( |
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$ |
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For the three months ended February 28, 2022 |
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Accumulated |
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Additional |
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other |
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Common stock |
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paid-in |
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Retained |
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comprehensive |
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Shares |
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Amount |
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capital |
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earnings |
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(loss)/income |
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Total |
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Balance as of November 30, 2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Unrealized losses on securities, net of $ |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
Reclassification adjustment for realized gains on securities, net of $ - million in tax expense (1) |
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— |
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— |
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— |
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— |
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— |
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— |
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Cash dividends declared ($ |
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— |
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— |
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— |
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( |
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— |
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( |
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Repurchases of common shares (2) |
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— |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation costs |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Activity related to equity-based plans |
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( |
) |
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— |
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Balance as of February 28, 2022 |
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$ |
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$ |
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$ |
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$ |
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( |
) |
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$ |
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See Notes to Consolidated Financial Statements.
3
PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - continued
In millions, except per share amounts
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For the nine months ended February 28, 2021 |
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Accumulated |
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Additional |
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other |
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Common stock |
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paid-in |
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Retained |
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comprehensive |
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Shares |
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Amount |
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capital |
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earnings |
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income |
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Total |
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Balance as of May 31, 2020 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Unrealized losses on securities, net of $ |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
Reclassification adjustment for realized gains on securities, net of $ |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Cash dividends declared ($ |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
Repurchases of common shares (2) |
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( |
) |
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— |
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( |
) |
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( |
) |
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— |
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( |
) |
Stock-based compensation costs |
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— |
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— |
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— |
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— |
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||
Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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Activity related to equity-based plans |
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— |
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