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

Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

6 Months Ended

Nov. 30, 2025

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:


	November 30, 2025
			Quoted		Significant
			prices in		other		Significant
	Carrying		active		observable		unobservable
	value		markets		inputs		inputs
In millions	(Fair value)		(Level 1)		(Level 2)		(Level 3)
Assets:
Restricted and unrestricted cash equivalents:
Commercial paper	$	100.0	$	—	$	100.0	$	—
U.S. government agency and treasury securities		725.0		—		725.0		—
Money market securities		8.2		8.2		—		—
Total restricted and unrestricted cash equivalents	$	833.2	$	8.2	$	825.0	$	—
AFS securities:
Asset-backed securities	$	142.7	$	—	$	142.7	$	—
Corporate bonds		2,301.3		—		2,301.3		—
Municipal bonds		925.3		—		925.3		—
U.S. government agency and treasury securities		1,169.3		—		1,169.3		—
Total AFS securities	$	4,538.6	$	—	$	4,538.6	$	—
Other	$	37.6	$	37.6	$	—	$	—
Liabilities:
Other long-term liabilities	$	37.6	$	37.6	$	—	$	—


	May 31, 2025
			Quoted		Significant
			prices in		other		Significant
	Carrying		active		observable		unobservable
	value		markets		inputs		inputs
In millions	(Fair value)		(Level 1)		(Level 2)		(Level 3)
Assets:
Restricted and unrestricted cash equivalents:
Corporate bonds	$	4.7	$	—	$	4.7	$	—
Municipal bonds		0.4				0.4		—
U.S. government agency and treasury securities		615.5		—		615.5		—
Money market securities		42.8		42.8		—		—
Total restricted and unrestricted cash equivalents	$	663.4	$	42.8	$	620.6	$	—
AFS securities:
Asset-backed securities	$	159.2	$	—	$	159.2	$	—
Corporate bonds		1,644.0		—		1,644.0		—
Municipal bonds		973.5		—		973.5		—
U.S. government agency and treasury securities		978.8		—		978.8		—
Total AFS securities	$	3,755.5	$	—	$	3,755.5	$	—
Other	$	34.5	$	34.5	$	—	$	—
Liabilities:
Other long-term liabilities	$	34.5	$	34.5	$	—	$	—

Schedule of Amortized Cost and Fair Value of Borrowings

The Company’s long-term borrowings are accounted for on a historical cost basis. The amortized cost and fair value of these borrowings were as follows:


	November 30, 2025				May 31, 2025
	Amortized		Fair		Amortized		Fair
In millions	cost		value		cost		value
Senior Notes, Series A	$	399.9	$	399.9	$	399.8	$	398.3
Senior Notes, Series B		399.4		402.3		399.3		395.5
5-Year Fixed Rate Corporate Bonds		1,486.3		1,528.5		1,484.8		1,505.1
7-Year Fixed Rate Corporate Bonds		1,483.9		1,544.1		1,482.7		1,504.9
10-Year Fixed Rate Corporate Bonds		1,182.6		1,243.1		1,181.6		1,201.9
Total long-term borrowings, net of debt issuance costs	$	4,952.1	$	5,118.0	$	4,948.2	$	5,005.7