Paychex, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

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

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

6 Months Ended

Nov. 30, 2018

Description of Business, Basis of Presentation, and Significant Accounting Policies [Abstract]

Schedule of Recast of Selected Unaudited Consolidated Statements

The following table presents a recast of selected unaudited Consolidated Statements of Income and Comprehensive Income line items after giving effect to the adoption of ASU No. 2014-09:



	For the three months ended November 30, 2017
	As Previously
In millions, except per share amounts	Reported		Adjustments		As Adjusted
Service revenue	$	812.5	$	(23.5)	$	789.0
Operating expenses		248.7		(0.1)		248.6
Selling, general and administrative expenses		245.6		5.7		251.3
Total expenses		494.3		5.6		499.9
Operating income		332.2		(29.1)		303.1
Income taxes		116.9		(10.9)		106.0
Net income	$	217.0	$	(18.2)	$	198.8
Basic earnings per share	$	0.60	$	(0.05)	$	0.55
Diluted earnings per share	$	0.60	$	(0.05)	$	0.55



	For the six months ended November 30, 2017
	As Previously
In millions, except per share amounts	Reported		Adjustments		As Adjusted
Service revenue	$	1,615.6	$	(47.4)	$	1,568.2
Operating expenses		480.8		(0.2)		480.6
Selling, general and administrative expenses		485.3		9.6		494.9
Total expenses		966.1		9.4		975.5
Operating income		677.2		(56.8)		620.4
Income taxes		236.2		(21.2)		215.0
Net income	$	444.8	$	(35.6)	$	409.2
Basic earnings per share	$	1.24	$	(0.10)	$	1.14
Diluted earnings per share	$	1.23	$	(0.10)	$	1.13

The following table presents a recast of selected unaudited Consolidated Balance Sheet line items after giving effect to the adoption of ASU No. 2014-09:



	May 31, 2018

	As Previously
In millions	Reported		Adjustments		As Adjusted
Assets
Accounts receivable, net of allowance for doubtful accounts	$	531.4	$	(39.0)	$	492.4
Prepaid expenses and other current assets	$	75.8	$	148.2	$	224.0
Long-term deferred costs(1)	$	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 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-Q.

The following table presents a recast of selected unaudited Consolidated Statement of Cash Flow line items after giving effect to the adoption of ASU No. 2014-09:



	For the six months ended November 30, 2017

	As Previously
In millions	Reported		Adjustments		As Adjusted
Cash flows from operating activities
Net income	$	444.8	$	(35.6)	$	409.2
Provision for deferred income taxes	$	68.4	$	(21.2)	$	47.2
Accounts receivable	$	(56.5)	$	48.0	$	(8.5)
Accounts payable and other current liabilities	$	(34.3)	$	(1.2)	$	(35.5)
Deferred costs	$	—	$	10.6	$	10.6
Net change in other long-term assets and liabilities	$	1.7	$	(0.6)	$	1.1