Annual report pursuant to Section 13 and 15(d)

Description of Business, Basis of Presentation, and Significant Accounting Policies (Tables)

v3.19.2
Description of Business, Basis of Presentation, and Significant Accounting Policies (Tables)
 12 Months Ended
May 31, 2019
Description of Business, Basis of Presentation, and Significant Accounting Policies [Abstract]  
Schedule of Recast of Selected Consolidated Statements of Income and Comprehensive Income





 

 

 

 

 

 

 

 

 



 

For the year ended May 31, 2018



 

As Previously

 

 

 

 

In millions, except per share amounts

 

Reported

 

Adjustments

 

As Adjusted

Service revenue

 

$

 3,317.4 

 

$

 (3.2)

 

$

 3,314.2 

Operating expenses

 

 

 1,017.8 

 

 

 0.4 

 

 

 1,018.2 

Selling, general and administrative expenses

 

 

 1,075.6 

 

 

 (7.6)

 

 

 1,068.0 

     Total expenses

 

 

 2,093.4 

 

 

 (7.2)

 

 

 2,086.2 

Operating income

 

 

 1,287.5 

 

 

 4.0 

 

 

 1,291.5 

Income taxes

 

 

 362.4 

 

 

 (56.4)

 

 

 306.0 

Net income

 

$

 933.7 

 

$

 60.4 

 

$

 994.1 

Basic earnings per share

 

$

 2.60 

 

$

 0.17 

 

$

 2.77 

Diluted earnings per share

 

$

 2.58 

 

$

 0.17 

 

$

 2.75 







 

 

 

 

 

 

 

 

 



 

For the year ended May 31, 2017



 

As Previously

 

 

 

 

In millions, except per share amounts

 

Reported

 

Adjustments

 

As Adjusted

Service revenue

 

$

 3,100.7 

 

$

 1.7 

 

$

 3,102.4 

Operating expenses

 

 

 919.6 

 

 

 (0.2)

 

 

 919.4 

Selling, general and administrative expenses

 

 

 992.1 

 

 

 (12.4)

 

 

 979.7 

     Total expenses

 

 

 1,911.7 

 

 

 (12.6)

 

 

 1,899.1 

Operating income

 

 

 1,239.6 

 

 

 14.3 

 

 

 1,253.9 

Income taxes

 

 

 427.5 

 

 

 5.3 

 

 

 432.8 

Net income

 

$

 817.3 

 

$

 9.0 

 

$

 826.3 

Basic earnings per share

 

$

 2.27 

 

$

 0.03 

 

$

 2.30 

Diluted earnings per share(1)

 

$

 2.25 

 

$

 0.02 

 

$

 2.28 

(1)

 Diluted earnings per share amounts may not add across by +/- $0.01 due to rounding.

Schedule of Recast of Selected Consolidated Balance Sheet





 

 

 

 

 

 

 

 

 



 

May 31, 2018



 

 

 

 

 

 

 

 

 



 

As Previously

 

 

 

 

In millions

 

Reported

 

Adjustments

 

As Adjusted

Assets

 

 

 

 

 

 

 

 

 

Accounts receivable, net of allowance for doubtful accounts

 

$

 413.6 

 

$

 (39.0)

 

$

 374.6 

PEO unbilled receivables, net of advance collections(1)

 

$

 117.8 

 

$

 —

 

$

 117.8 

Prepaid expenses and other current assets

 

$

 75.8 

 

$

 148.2 

 

$

 224.0 

Long-term deferred costs(2)

 

$

 18.5 

 

$

 342.5 

 

$

 361.0 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 74.5 

 

$

 (0.8)

 

$

 73.7 

Deferred revenue

 

$

 24.3 

 

$

 10.3 

 

$

 34.6 

Deferred income taxes

 

$

 48.8 

 

$

 105.6 

 

$

 154.4 

Other long-term liabilities

 

$

 84.8 

 

$

 4.3 

 

$

 89.1 

Retained earnings

 

$

 930.3 

 

$

 332.3 

 

$

 1,262.6 

(1)

Amounts were previously reported as a component of accounts receivable, net of allowance for doubtful accounts included in the Company’s fiscal 2018 Form 10-K.  PEO unbilled receivables, net of advance collections are separately presented on the Consolidated Balance Sheets contained in this Form 10-K.

(2)

Amounts were previously reported as a component of other long-term assets on the Consolidated Balance Sheets included in the Company’s fiscal 2018 Form 10-K.  Long-term deferred costs are separately presented on the Consolidated Balance Sheets contained in this Form 10-K.

Schedule of Recast of Selected Consolidated Statement of Cash Flow





 

 

 

 

 

 

 

 

 

 

 

 



 

For the year ended May 31, 2018



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

ASU No.

 

ASU No.

 

 

 



 

As Previously

 

2014-09

 

2016-18

 

 

 

In millions

 

Reported

 

Adjustments

 

Adjustments

 

As Adjusted

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 933.7 

 

$

 60.4 

 

$

 —

 

$

 994.1 

Amortization of deferred contract costs

 

$

 —

 

$

 174.7 

 

$

 —

 

$

 174.7 

Provision/(benefit) for deferred income taxes

 

$

 19.2 

 

$

 (56.4)

 

$

 —

 

$

 (37.2)

Accounts receivable and PEO unbilled receivables, net

 

$

 13.6 

 

$

 2.6 

 

$

 —

 

$

 16.2 

Prepaid expenses and other current assets

 

$

 17.7 

 

$

 0.3 

 

$

 —

 

$

 18.0 

Accounts payable and other current liabilities

 

$

 42.6 

 

$

 0.3 

 

$

 —

 

$

 42.9 

Deferred costs

 

$

 —

 

$

 (181.8)

 

$

 —

 

$

 (181.8)

Net change in other long-term assets and liabilities

 

$

 (5.6)

 

$

 (0.1)

 

$

 —

 

$

 (5.7)

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Net change in funds held for clients' money market securities and

  other cash equivalents

 

$

 (1,677.5)

 

$

 —

 

$

 1,677.5 

 

$

 —

Net cash (used in)/provided by investing activities

 

$

 (679.0)

 

$

 —

 

$

 1,677.5 

 

$

 998.5 

Net change in cash, cash equivalents, restricted

  cash and restricted cash equivalents

 

$

 173.6 

 

$

 —

 

$

 1,677.5 

 

$

 1,851.1 

Cash, cash equivalents, restricted cash and restricted cash

  equivalents, beginning of fiscal year

 

$

 184.6 

 

$

 —

 

$

 264.8 

 

$

 449.4 

Cash, cash equivalents, restricted cash and restricted

  cash equivalents, end of period

 

$

 358.2 

 

$

 —

 

$

 1,942.3 

 

$

 2,300.5 













 

 

 

 

 

 

 

 

 

 

 

 



 

For the year ended May 31, 2017



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

ASU No.

 

ASU No.

 

 

 



 

As Previously

 

2014-09

 

2016-18

 

 

 

In millions

 

Reported

 

Adjustments

 

Adjustments

 

As Adjusted

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 817.3 

 

$

 9.0 

 

$

 —

 

$

 826.3 

Amortization of deferred contract costs

 

$

 —

 

$

 169.4 

 

$

 —

 

$

 169.4 

Provision for deferred income taxes

 

$

 17.4 

 

$

 5.3 

 

$

 —

 

$

 22.7 

Accounts receivable and PEO unbilled receivables, net

 

$

 (103.7)

 

$

 0.4 

 

$

 —

 

$

 (103.3)

Prepaid expenses and other current assets

 

$

 (34.1)

 

$

 1.9 

 

$

 —

 

$

 (32.2)

Accounts payable and other current liabilities

 

$

 39.1 

 

$

 (0.9)

 

$

 —

 

$

 38.2 

Deferred costs

 

$

 —

 

$

 (185.6)

 

$

 —

 

$

 (185.6)

Net change in other long-term assets and liabilities

 

$

 (15.4)

 

$

 0.5 

 

$

 —

 

$

 (14.9)

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Net change in funds held for clients' money market securities and

  other cash equivalents

 

$

 237.6 

 

$

 —

 

$

 (237.6)

 

$

 —

Net cash used in investing activities

 

$

 (424.6)

 

$

 —

 

$

 (237.6)

 

$

 (662.2)

Net change in cash, cash equivalents, restricted

  cash and restricted cash equivalents

 

$

 53.1 

 

$

 —

 

$

 (237.6)

 

$

 (184.5)

Cash, cash equivalents, restricted cash and restricted cash

  equivalents, beginning of fiscal year

 

$

 131.5 

 

$

 —

 

$

 502.4 

 

$

 633.9 

Cash, cash equivalents, restricted cash and restricted

  cash equivalents, end of period

 

$

 184.6 

 

$

 —

 

$

 264.8 

 

$

 449.4 



Estimated Useful Lives of Depreciable Assets



 

 



 

 

Category

 

Depreciable life

Buildings and improvements

 

10 to 35 years or the remaining life, whichever is shorter

Data processing equipment

 

Three to four years

Furniture, fixtures, and equipment

 

Two to seven years

Leasehold improvements

 

10 years or the life of the lease, whichever is shorter