Paychex, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Segment Reporting (Tables)

Segment Reporting (Tables)

3 Months Ended

Aug. 31, 2025

Schedule of Total Revenue, Net Income and Significant Expenses Used by the Chief Operating Decision Maker

Total revenue, net income, and significant expenses used by the chief operating decision maker for the purpose of allocating resources and evaluating the Company's financial performance were as follows:


	For the three months ended
	August 31,			August 31,
In millions	2025			2024
Total revenue	$	1,540.0		$	1,318.5

Core business operations:
Compensation-related expenses		530.0			451.3
PEO direct insurance costs		138.6			130.3
Depreciation and amortization		48.2			39.0
Other segment items(1)		196.5			151.2
Non-core business operations:
Acquisition-related costs(2)		84.8			—
Total expenses		998.1			771.8
Interest expense		(68.2	)		(9.6	)
Other income, net		23.8			20.0
Income before income taxes		497.5			557.1
Income tax expense		113.7			129.7
Net income	$	383.8		$	427.4

(1)

Other segment items include professional service expense, marketing and advertising expenses, and other overhead expenses.

(2)

Acquisition-related costs included in total expenses include the amortization of intangibles acquired in the acquisition of Paycor, compensation costs related to the acquisition and integration of Paycor, including replacement awards, severance, and retention bonuses, and other acquisition-related costs, primarily reflecting third-party professional service fees.