Note H: Supplemental Information

Leases: As of August 31, 2025, the Company entered into two lease agreements that had not yet commenced for terms ranging from 7.58 years to 10.25 years. These leases will require aggregate lease payments of approximately $28.8 million over their respective terms.

Property and equipment, net of accumulated depreciation: Depreciation expense was $34.5 million for the three months ended August 31, 2025 compared to $27.2 million for the three months ended August 31, 2024.

Goodwill and intangible assets, net of accumulated amortization: Amortization expense relating to intangible assets was $74.8 million for the three months ended August 31, 2025 compared to $11.8 million for the three months ended August 31, 2024. During the three months ended August 31, 2025, goodwill related to the acquisition of Paycor increased $5.8 million, primarily due to the write-down of a building by $4.9 million, net of deferred taxes of $1.9 million as a result of an updated valuation. Refer to Note D Business Combinations for additional information regarding this acquisition and the impact it had on goodwill and intangible assets. The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during the three months ended August 31, 2025 or August 31, 2024.

Short-term financing: Outstanding borrowings on the Company’s credit facilities had a weighted-average interest rate of 4.03% and 3.87% as of August 31, 2025 and May 31, 2025, respectively. The unused amount available under these credit facilities as of August 31, 2025 was approximately $2.0 billion.

The credit facilities contain various financial and operational covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of August 31, 2025.

Letters of credit: The Company had irrevocable standby letters of credit available totaling $177.2 million and $165.0 million as of August 31, 2025 and May 31, 2025, respectively, primarily to secure commitments for certain insurance policies. The letters of credit expire at various dates between September 01, 2025 and February 28, 2027. No amounts were outstanding on these letters of credit as of, or during the three months ended August 31, 2025 and August 31, 2024, or as of May 31, 2025.

Long-term debt: There have been no material changes to the Company's long-term debt agreement or balances subsequent to May 31, 2025. The Company’s long-term debt agreement and Corporate Bonds contain customary representations, warranties, affirmative and negative covenants, including financial covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of August 31, 2025.