Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PAYC | |
Entity Registrant Name | Paycom Software, Inc. | |
Entity Central Index Key | 0001590955 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,228,165 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Entity File Number | 001-36393 | |
Entity Tax Identification Number | 80-0957485 | |
Entity Address, Address Line One | 7501 W. Memorial Road | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 73142 | |
City Area Code | 405 | |
Local Phone Number | 722-6900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 484,028 | $ 400,730 |
Accounts receivable | 15,548 | 22,843 |
Prepaid expenses | 40,561 | 34,056 |
Inventory | 836 | 1,607 |
Income tax receivable | 10,770 | 5,583 |
Deferred contract costs | 111,877 | 96,378 |
Current assets before funds held for clients | 663,620 | 561,197 |
Funds held for clients | 1,899,346 | 2,202,975 |
Total current assets | 2,562,966 | 2,764,172 |
Property and equipment, net | 468,282 | 402,448 |
Intangible assets, net | 51,088 | 54,017 |
Goodwill | 51,889 | 51,889 |
Long-term deferred contract costs | 645,611 | 567,974 |
Other assets | 76,265 | 62,013 |
Total assets | 3,856,101 | 3,902,513 |
Current liabilities: | ||
Accounts payable | 6,889 | 16,054 |
Accrued commissions and bonuses | 20,423 | 28,439 |
Accrued payroll and vacation | 41,160 | 45,023 |
Deferred revenue | 22,730 | 19,825 |
Accrued expenses and other current liabilities | 77,065 | 59,990 |
Current liabilities before client funds obligation | 168,267 | 169,331 |
Client funds obligation | 1,901,643 | 2,207,706 |
Total current liabilities | 2,069,910 | 2,377,037 |
Deferred income tax liabilities, net | 145,465 | 141,033 |
Long-term deferred revenue | 105,588 | 97,591 |
Long-term debt | 29,000 | 29,000 |
Other long-term liabilities | 84,829 | 75,245 |
Total long-term liabilities | 364,882 | 342,869 |
Total liabilities | 2,434,792 | 2,719,906 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value (100,000 shares authorized, 62,655 and 62,518 shares issued at September 30, 2023 and December 31, 2022, respectively; 57,700 and 57,867 shares outstanding at September 30, 2023 and December 31, 2022, respectively) | 627 | 625 |
Additional paid-in capital | 687,723 | 576,622 |
Retained earnings | 1,410,659 | 1,196,968 |
Accumulated other comprehensive earnings (loss) | (2,181) | (3,703) |
Treasury stock, at cost (4,955 and 4,651 shares at September 30, 2023 and December 31, 2022, respectively) | (675,519) | (587,905) |
Total stockholders’ equity | 1,421,309 | 1,182,607 |
Total liabilities and stockholders’ equity | $ 3,856,101 | $ 3,902,513 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 62,655,000 | 62,518,000 |
Common stock, shares outstanding | 57,700,000 | 57,867,000 |
Treasury stock, shares | 4,955,000 | 4,651,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Total revenues | $ 406,303 | $ 334,167 | $ 1,259,079 | $ 1,004,610 |
Cost of revenues | ||||
Operating expenses | 55,600 | 44,169 | 163,302 | 122,265 |
Depreciation and amortization | 13,341 | 10,935 | 38,299 | 31,405 |
Total cost of revenues | 68,941 | 55,104 | 201,601 | 153,670 |
Administrative expenses | ||||
Sales and marketing | 101,162 | 91,114 | 311,171 | 253,834 |
Research and development | 51,864 | 40,366 | 143,651 | 108,774 |
General and administrative | 71,827 | 60,693 | 213,397 | 179,109 |
Depreciation and amortization | 15,608 | 12,625 | 44,660 | 36,378 |
Total administrative expenses | 240,461 | 204,798 | 712,879 | 578,095 |
Total operating expenses | 309,402 | 259,902 | 914,480 | 731,765 |
Operating income | 96,901 | 74,265 | 344,599 | 272,845 |
Interest expense | (222) | (1,018) | (1,661) | (1,587) |
Other income (expense), net | 5,362 | 2,041 | 17,549 | 4,331 |
Income before income taxes | 102,041 | 75,288 | 360,487 | 275,589 |
Provision for income taxes | 26,822 | 23,135 | 101,456 | 74,151 |
Net income | $ 75,219 | $ 52,153 | $ 259,031 | $ 201,438 |
Earnings per share, basic | $ 1.3 | $ 0.9 | $ 4.48 | $ 3.48 |
Earnings per share, diluted | $ 1.3 | $ 0.9 | $ 4.46 | $ 3.46 |
Weighted average shares outstanding: | ||||
Basic | 57,825 | 57,865 | 57,871 | 57,949 |
Diluted | 57,966 | 58,033 | 58,056 | 58,193 |
Comprehensive earnings (loss): | ||||
Net income | $ 75,219 | $ 52,153 | $ 259,031 | $ 201,438 |
Unrealized net gains (losses) on available-for-sale securities | 1,232 | (2,705) | 2,047 | (4,881) |
Tax effect | (420) | 492 | (525) | 1,068 |
Other comprehensive income (loss), net of tax | 812 | (2,213) | 1,522 | (3,813) |
Comprehensive earnings (loss) | 76,031 | 49,940 | 260,553 | 197,625 |
Recurring [Member] | ||||
Revenues | ||||
Total revenues | 398,763 | 328,150 | 1,237,706 | 987,848 |
Implementation and Other [Member] | ||||
Revenues | ||||
Total revenues | $ 7,540 | $ 6,017 | $ 21,373 | $ 16,762 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] |
Beginning balance, value at Dec. 31, 2021 | $ 893,714 | $ 623 | $ 465,594 | $ 915,579 | $ (488,082) | |
Beginning balance, shares at Dec. 31, 2021 | 62,298 | 4,286 | ||||
Vesting of restricted stock, shares | 4 | |||||
Stock-based compensation | 24,713 | 24,713 | ||||
Repurchases of common stock | (218) | $ (218) | ||||
Repurchases of common stock, shares | 1 | |||||
Net income | 91,930 | 91,930 | ||||
Other comprehensive earnings (loss), net of tax | (1,119) | $ (1,119) | ||||
Ending balance, value at Mar. 31, 2022 | 1,009,020 | $ 623 | 490,307 | 1,007,509 | (1,119) | $ (488,300) |
Ending balance, shares at Mar. 31, 2022 | 62,302 | 4,287 | ||||
Beginning balance, value at Dec. 31, 2021 | 893,714 | $ 623 | 465,594 | 915,579 | $ (488,082) | |
Beginning balance, shares at Dec. 31, 2021 | 62,298 | 4,286 | ||||
Net income | 201,438 | |||||
Ending balance, value at Sep. 30, 2022 | 1,076,380 | $ 625 | 550,302 | 1,117,017 | (3,813) | $ (587,751) |
Ending balance, shares at Sep. 30, 2022 | 62,517 | 4,650 | ||||
Beginning balance, value at Mar. 31, 2022 | 1,009,020 | $ 623 | 490,307 | 1,007,509 | (1,119) | $ (488,300) |
Beginning balance, shares at Mar. 31, 2022 | 62,302 | 4,287 | ||||
Vesting of restricted stock | $ 2 | (2) | ||||
Vesting of restricted stock, shares | 212 | |||||
Stock-based compensation | 27,472 | 27,472 | ||||
Repurchases of common stock | (99,227) | $ (99,227) | ||||
Repurchases of common stock, shares | 363 | |||||
Net income | 57,355 | 57,355 | ||||
Other comprehensive earnings (loss), net of tax | (481) | (481) | ||||
Ending balance, value at Jun. 30, 2022 | 994,139 | $ 625 | 517,777 | 1,064,864 | (1,600) | $ (587,527) |
Ending balance, shares at Jun. 30, 2022 | 62,514 | 4,650 | ||||
Vesting of restricted stock, shares | 3 | |||||
Stock-based compensation | 32,525 | 32,525 | ||||
Repurchases of common stock | (224) | $ (224) | ||||
Net income | 52,153 | 52,153 | ||||
Other comprehensive earnings (loss), net of tax | (2,213) | (2,213) | ||||
Ending balance, value at Sep. 30, 2022 | 1,076,380 | $ 625 | 550,302 | 1,117,017 | (3,813) | $ (587,751) |
Ending balance, shares at Sep. 30, 2022 | 62,517 | 4,650 | ||||
Beginning balance, value at Dec. 31, 2022 | 1,182,607 | $ 625 | 576,622 | 1,196,968 | (3,703) | $ (587,905) |
Beginning balance, shares at Dec. 31, 2022 | 62,518 | 4,651 | ||||
Vesting of restricted stock, shares | 7 | |||||
Stock-based compensation | 32,344 | 32,344 | ||||
Repurchases of common stock | (626) | $ (626) | ||||
Repurchases of common stock, shares | 2 | |||||
Net income | 119,296 | 119,296 | ||||
Other comprehensive earnings (loss), net of tax | 850 | 850 | ||||
Ending balance, value at Mar. 31, 2023 | 1,334,471 | $ 625 | 608,966 | 1,316,264 | (2,853) | $ (588,531) |
Ending balance, shares at Mar. 31, 2023 | 62,525 | 4,653 | ||||
Beginning balance, value at Dec. 31, 2022 | 1,182,607 | $ 625 | 576,622 | 1,196,968 | (3,703) | $ (587,905) |
Beginning balance, shares at Dec. 31, 2022 | 62,518 | 4,651 | ||||
Net income | 259,031 | |||||
Ending balance, value at Sep. 30, 2023 | 1,421,309 | $ 627 | 687,723 | 1,410,659 | (2,181) | $ (675,519) |
Ending balance, shares at Sep. 30, 2023 | 62,655 | 4,955 | ||||
Beginning balance, value at Mar. 31, 2023 | 1,334,471 | $ 625 | 608,966 | 1,316,264 | (2,853) | $ (588,531) |
Beginning balance, shares at Mar. 31, 2023 | 62,525 | 4,653 | ||||
Vesting of restricted stock | $ 1 | (1) | ||||
Vesting of restricted stock, shares | 115 | |||||
Stock-based compensation | 41,000 | 41,000 | ||||
Repurchases of common stock | (10,441) | $ (10,441) | ||||
Repurchases of common stock, shares | 38 | |||||
Dividends declared | (22,721) | (22,721) | ||||
Net income | 64,516 | 64,516 | ||||
Other comprehensive earnings (loss), net of tax | (140) | (140) | ||||
Ending balance, value at Jun. 30, 2023 | 1,406,685 | $ 626 | 649,965 | 1,358,059 | (2,993) | $ (598,972) |
Ending balance, shares at Jun. 30, 2023 | 62,640 | 4,691 | ||||
Vesting of restricted stock | 1 | $ 1 | ||||
Vesting of restricted stock, shares | 150 | |||||
Stock-based compensation | 37,758 | 37,758 | ||||
Repurchases of common stock | (76,547) | $ (76,547) | ||||
Repurchases of common stock, shares | 264 | |||||
Dividends declared | (22,619) | (22,619) | ||||
Net income | 75,219 | 75,219 | ||||
Other comprehensive earnings (loss), net of tax | 812 | 812 | ||||
Ending balance, value at Sep. 30, 2023 | $ 1,421,309 | $ 627 | $ 687,723 | $ 1,410,659 | $ (2,181) | $ (675,519) |
Ending balance, shares at Sep. 30, 2023 | 62,655 | 4,955 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Dividends declared per share | $ 0.375 | $ 0.375 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 259,031 | $ 201,438 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 82,959 | 67,783 |
Accretion of discount on available-for-sale securities | (387) | (872) |
Non-cash marketing expense | 1,263 | 1,320 |
Gain on disposition of property and equipment | (33) | |
Amortization of debt issuance costs | 946 | 532 |
Stock-based compensation expense | 96,383 | 70,815 |
Loss on extinguishment of debt | 1,222 | |
Cash paid for derivative settlement | 205 | |
Gain on derivative | (1,559) | |
Deferred income taxes, net | 3,889 | (4,841) |
Other | 18 | (227) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,295 | (5,406) |
Prepaid expenses | (8,845) | (11,203) |
Inventory | 375 | 27 |
Other assets | (15,773) | (10,104) |
Deferred contract costs | (87,604) | (86,634) |
Accounts payable | (8,131) | 4,159 |
Income taxes, net | (5,187) | 1,245 |
Accrued commissions and bonuses | (8,016) | (3,320) |
Accrued payroll and vacation | (3,863) | 1,810 |
Deferred revenue | 10,902 | 12,585 |
Accrued expenses and other current liabilities | 24,125 | (1,106) |
Net cash provided by operating activities | 350,569 | 236,647 |
Cash flows from investing activities | ||
Purchases of investments from funds held for clients | (25,000) | (268,718) |
Proceeds from investments from funds held for clients | 25,000 | 328,731 |
Purchases of property and equipment | (135,709) | (92,041) |
Proceeds from sale of property and equipment | 67 | |
Net cash used in investing activities | (135,642) | (32,028) |
Cash flows from financing activities | ||
Proceeds from the issuance of debt | 29,000 | |
Repurchases of common stock | (74,994) | (94,652) |
Withholding taxes paid related to net share settlements | (12,620) | (5,017) |
Payments on long-term debt | (29,287) | |
Dividends paid | (43,367) | |
Net change in client funds obligation | (306,063) | (92,478) |
Payment of debt issuance costs | (649) | (6,437) |
Net cash used in financing activities | (437,693) | (198,871) |
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (222,766) | 5,748 |
Cash, cash equivalents, restricted cash and restricted cash equivalents | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 2,409,095 | 1,812,691 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | 2,186,329 | 1,818,439 |
Cash and cash equivalents | 484,028 | 317,163 |
Restricted cash included in funds held for clients | 1,702,301 | 1,501,276 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | 2,186,329 | 1,818,439 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment, accrued but not paid | 8,011 | 3,355 |
Stock-based compensation for capitalized software | 11,529 | 6,545 |
Right of use assets obtained in exchange for operating lease liabilities | $ 21,023 | $ 14,385 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ 75,219 | $ 64,516 | $ 119,296 | $ 52,153 | $ 57,355 | $ 91,930 | $ 259,031 | $ 201,438 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Insider Trading Arrangements On August 10, 2023 , Chad Richison , President, Chief Executive Officer and Chairman of the Board of Directors, adopted a Rule 10b5-1 trading arrangement (the “10b5-1 Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act. The 10b5-1 Plan provides for the sale of up to 250,000 shares of our common stock at specified market prices, commencing on the later of (i) November 8, 2023 and (ii) the second trading day following disclosure of the Company’s financial results on Form 10-Q for the quarter ended September 30, 2023, and ending May 2, 2024. |
Name | Chad Richison |
Title | President, Chief Executive Officer and Chairman |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 10, 2023 |
Aggregate Available | 250,000 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization And Description Of Business Abstract | |
Organization and Description of Business | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Paycom Software, Inc. (“Software”) and its wholly-owned subsidiaries (collectively, the “Company”) is a leading provider of a comprehensive, cloud-based human capital management (“HCM”) solution delivered as Software-as-a-Service. Unless we state otherwise or the context otherwise requires, the terms “we,” “our,” “us” and the “Company” refer to Software and its consolidated subsidiaries. We provide functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (“HR”) management applications. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are discussed in “Note 2. Summary of Significant Accounting Policies” in the notes to our audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022 (the “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”) on February 16, 2023. Basis of Presentation The accompanying unaudited interim consolidated financial statements and notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes presented in the Form 10-K. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results expected for the full year. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. Prior to August 24, 2022, our floating-to-fixed interest rate swap was outstanding to offset the rate variability associated with our outstanding indebtedness. As discussed in Note 7, the interest rate swap was terminated on August 24, 2022. As a result, the adoption of ASU 2020-04 had no material impact on our unaudited interim consolidated financial statements. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848) Scope” (“ASU 2021-01”), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that are affected by the discounting transition. ASU 2021-01 amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. As discussed in Note 7, the interest rate swap was terminated on August 24, 2022. As a result, the adoption of ASU 2021-01 had no material impact on our unaudited interim consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, loss contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could materially differ from these estimates. Seasonality Our revenues are seasonal in nature and generally we expect our first and fourth quarter recurring revenues to be higher than other quarters during the year. Recurring revenues include revenues relating to the annual processing of payroll tax filing forms and Affordable Care Act form filing requirements and revenues from processing unscheduled payroll runs (such as bonuses) for our clients. As payroll tax forms are typically processed in the first quarter of the year, first quarter recurring revenues and margins are positively impacted. In addition, unscheduled payroll runs at the end of the year often result in increased recurring revenues in the fourth quarter. These seasonal fluctuations in revenues can also have an impact on gross profits. Historical results impacted by these seasonal trends should not be considered a reliable indicator of our future results of operations. Funds Held for Clients and Client Funds Obligation As part of our payroll and tax filing application, we (i) collect client funds to satisfy their respective federal, state and local employment tax obligations, (ii) remit such funds to the appropriate taxing authorities and accounts designated by our clients, and (iii) manage client tax filings and any related correspondence with taxing authorities. Amounts collected by us from clients for their federal, state and local employment taxes are invested by us, and we earn interest on these funds during the interval between receipt and disbursement. These investments are shown in our consolidated balance sheets as funds held for clients, and the associated liability for the tax filings is shown as client funds obligation. The liability is recorded in the accompanying consolidated balance sheets at the time we obtain the funds from clients. The client funds obligation represents liabilities that will be repaid within one year of the consolidated balance sheet date. As of September 30, 2023 and December 31, 2022, the funds held for clients were invested in money market funds, demand deposit accounts and certificates of deposit. Additionally, the funds held for clients were invested in U.S. treasury securities with an original maturity of greater than one year. Historically, we have also invested funds held for clients in commercial paper. Short-term investments in instruments with an original maturity greater than three months, including certificates of deposit, commercial paper and U.S. treasury securities, are classified as available-for-sale securities and are also included within the funds held for clients line item in the consolidated balance sheets. These available-for-sale securities are recorded in the consolidated balance sheets at fair value, with the difference between the amortized cost and fair value of these available-for-sale securities recorded as unrealized net gains (losses) on available-for-sale securities and are included within comprehensive earnings (loss) in the consolidated statements of comprehensive income. Funds held for clients are classified as a current asset in the consolidated balance sheets because the funds are held solely to satisfy the client funds obligation. Additionally, the funds held for clients is classified as restricted cash and restricted cash equivalents and presented within the reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents on the consolidated statements of cash flows. Stock Repurchase Plan In May 2016, our Board of Directors authorized a stock repurchase plan allowing for the repurchase of shares of our common stock in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs. Since the initial authorization of the stock repurchase plan, our Board of Directors has amended and extended and authorized new stock repurchase plans from time to time. Most recently, in August 2022, our Board of Directors authorized the repurchase of up to $ 1.1 billion of our common stock. As of September 30, 2023, there was $ 1.0 billion available for repurchases under our stock repurchase plan. Our stock repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions, shares withheld for taxes associated with the vesting of restricted stock and other corporate considerations. The current stock repurchase plan will expire on August 15, 2024 . During the nine months ended September 30, 2023, we repurchased an aggregate of 303,401 shares of our common stock at an average cost of $ 288.77 per share, including 43,891 shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of equity incentive awards. Recently Issued Accounting Pronouncements Accounting pronouncements issued, but not effective until after September 30, 2023, are not expected to have a significant impact on our consolidated financial position or results of operations. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. REVENUE Revenues are recognized when control of the promised goods or services is transferred to our clients in an amount that reflects the consideration we expect to be entitled to for those goods or services. Substantially all of our revenues are comprised of revenue from contracts with clients. Sales taxes and other applicable taxes are excluded from revenues. Recurring Revenues Recurring revenues are derived primarily from our talent acquisition, time and labor management, payroll, talent management, HR management, and Global HCM applications as well as fees charged for form filings and delivery of client payroll checks and reports. Talent acquisition includes our Applicant Tracking, Candidate Tracker, Enhanced Background Checks®, Onboarding, E-Verify® and Tax Credit Services applications. Time and labor management includes Time and Attendance, Scheduling/Schedule exchange, Time-Off Requests, Labor Allocation, Labor Management Reports/Push Reporting®, Geofencing/Geotracking and Microfence® tools and applications. Payroll includes Beti®, Payroll and Tax Management, Vault, Everyday, Paycom Pay®, Expense Management, Mileage Tracker/FAVR, Garnishment Administration and GL Concierge applications. Talent management includes our Employee Self-Service®, Compensation Budgeting, Performance Management, Position Management, My Analytics and Paycom Learning and Content Subscriptions applications. HR management includes our Manager on-the-Go®, Direct Data Exchange®, Ask Here, Documents and Checklists, Government and Compliance, Benefits Administration/Benefits to Carrier, Benefit Enrollment Service, COBRA Administration, Personnel Action Forms and Performance Discussion Forms, Surveys, Client Action Center, Enhanced ACA and Clue® applications. With Global HCM, a number of our HCM applications and tools are available in 15 languages and dialects and are accessible to users in more than 180 countries. The performance obligations related to recurring revenues are generally satisfied during each client’s payroll period, with the agreed-upon fee being charged and collected as part of our processing of the client’s payroll. Recurring revenues are recognized at the conclusion of processing of each client’s payroll period, when each respective payroll client is billed. Collectability is reasonably assured as the fees are generally collected through an automated clearing house as part of the client’s payroll cycle or through direct wire transfer, which minimizes the default risk. The contract period for substantially all contracts associated with these revenues is one month due to the fact that both we and the client have the unilateral right to terminate a wholly unperformed contract without compensating the other party by providing 30 days’ notice of termination. Our payroll application is the foundation of our solution, and all of our clients are required to utilize this application in order to access our other applications. For clients who purchase multiple applications, due to the short-term nature of our contracts, we do not believe it is meaningful to separately assess and identify whether or not each application potentially represents its own, individual, performance obligation as the revenue generated from each application is recognized within the same month as the revenue from the core payroll application. Similarly, we do not believe it is meaningful to individually determine the standalone selling price for each application. We consider the total price charged to a client in a given period to be indicative of the standalone selling price, as the total amount charged is within a reasonable range of prices typically charged for our goods and services for comparable classes of client groups, which we periodically assess for price adjustments. Interest income on funds held for clients is earned on funds that are collected from clients in advance of either the applicable due date for payroll tax submissions or the applicable disbursement date for employee payment services. The interest earned on these funds is included in recurring revenues in the consolidated statements of comprehensive income, as the collection, holding, and remittance of these funds are essential components of providing these services. Implementation and Other Revenues Implementation and other revenues consist of nonrefundable upfront conversion fees which are charged to new clients to offset the expense of new client set-up as well as revenues from the sale of time clocks as part of our Time and Attendance application. Although these revenues are related to our recurring revenues, they represent distinct performance obligations. Implementation activities primarily represent administrative activities that allow us to fulfill future performance obligations for our clients and do not represent services transferred to the client. However, the nonrefundable upfront fee charged to our clients results in an implied performance obligation in the form of a material right to the client related to the client’s option to renew at the end of each 30-day contract period. Further, given that all other services within the contract are sold at a total price indicative of the standalone selling price, coupled with the fact that the upfront fees are consistent with upfront fees charged in similar contracts that we have with clients, the standalone selling price of the client’s option to renew the contract approximates the dollar amount of the nonrefundable upfront fee. The nonrefundable upfront fee is typically included on the client’s first invoice and is deferred and recognized ratably over the estimated renewal period ( i.e. , ten-year estimated client life). Revenues from the sale of time clocks are recognized when control is transferred to the client upon delivery of the product. We estimate the standalone selling price for the time clocks by maximizing the use of observable inputs such as our specific pricing practices for time clocks. Contract Balances The timing of revenue recognition for recurring services is consistent with the invoicing of clients as they both occur during the respective client payroll period for which the services are provided. Therefore, we do not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing. Changes in deferred revenue related to material rights for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 124,233 $ 108,880 $ 117,416 $ 101,426 Recognition of revenue included in beginning of period balance ( 5,592 ) ( 4,705 ) ( 16,185 ) ( 13,548 ) Contract balance, net of revenue recognized during the period 9,677 9,836 27,087 26,133 Balance, end of period $ 128,318 $ 114,011 $ 128,318 $ 114,011 We expect to recognize $ 6.2 million of deferred revenue related to material right performance obligations in the remainder of 2023 , $ 21.8 million of such deferred revenue in 2024 , and $ 100.3 million of such deferred revenue thereafter . Assets Recognized from the Costs to Obtain and Costs to Fulfill Revenue Contracts We recognize an asset for the incremental costs of obtaining a contract with a client if we expect the amortization period to be longer than one year. We also recognize an asset for the costs to fulfill a contract with a client if such costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. We have determined that substantially all costs related to implementation activities are administrative in nature and also meet the capitalization criteria under ASC 340-40. These capitalized costs to fulfill principally relate to upfront direct costs that are expected to be recovered through margin and that enhance our ability to satisfy future performance obligations. The assets related to both costs to obtain, and costs to fulfill, contracts with clients are accounted for utilizing a portfolio approach and are capitalized and amortized ratably over the expected period of benefit, which we have determined to be the estimated life of the client relationship of ten years. The expected period of benefit has been determined to be the estimated life of the client relationship primarily because we incur no new costs to obtain, or costs to fulfill, a contract upon renewal of such contract. Additional commission costs may be incurred when an existing client purchases additional applications; however, these commission costs relate solely to the additional applications purchased and are not related to contract renewal. Furthermore, additional fulfillment costs associated with existing clients purchasing additional applications are minimized by our seamless single-database platform. These assets are presented as deferred contract costs in the accompanying consolidated balance sheets. Amortization expense related to costs to obtain and costs to fulfill a contract are included in the “sales and marketing” and “general and administrative” line items in the accompanying consolidated statements of comprehensive income. The following tables present the asset balances and related amortization expense for these contract costs: As of and for the Three Months Ended September 30, 2023 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 350,486 $ 21,451 $ ( 13,901 ) $ 358,036 Costs to fulfill a contract $ 380,324 $ 32,680 $ ( 13,552 ) $ 399,452 As of and for the Three Months Ended September 30, 2022 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 295,986 $ 21,663 $ ( 11,530 ) $ 306,119 Costs to fulfill a contract $ 302,019 $ 30,195 $ ( 10,559 ) $ 321,655 As of and for the Nine Months Ended September 30, 2023 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 325,457 $ 72,885 $ ( 40,306 ) $ 358,036 Costs to fulfill a contract $ 338,895 $ 98,842 $ ( 38,285 ) $ 399,452 As of and for the Nine Months Ended September 30, 2022 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 272,919 $ 66,544 $ ( 33,344 ) $ 306,119 Costs to fulfill a contract $ 265,657 $ 85,644 $ ( 29,646 ) $ 321,655 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. PROPERTY AND EQUIPMENT Property and equipment and accumulated depreciation and amortization were as follows: September 30, 2023 December 31, 2022 Property and equipment Software and capitalized software development costs $ 343,841 $ 270,645 Buildings 179,367 177,765 Computer equipment 152,676 133,715 Rental clocks 40,760 35,846 Furniture, fixtures and equipment 31,265 28,414 Other 18,306 17,321 766,215 663,706 Less: accumulated depreciation and amortization ( 408,947 ) ( 331,340 ) 357,268 332,366 Construction in progress 77,218 36,286 Land 33,796 33,796 Property and equipment, net $ 468,282 $ 402,448 We capitalize computer software development costs related to software developed for internal use in accordance with ASC 350-40. For the three and nine months ended September 30, 2023, we capitalized $ 26.6 million and $ 70.8 million, respectively, of computer software development costs related to software developed for internal use. For the three and nine months ended September 30, 2022, we capitalized $ 17.0 million and $ 48.8 million, respectively, of computer software development costs related to software developed for internal use. Rental clocks included in property and equipment, net represent time clocks issued to clients under month-to-month operating leases. As such, these items are transferred from inventory to property and equipment and depreciated over their estimated useful lives. We capitalize interest incurred for indebtedness related to construction in progress. For the three and nine months ended September 30, 2023, we incurred interest costs of $ 1.3 million and $ 4.2 million, respectively, of which we capitalized $ 1.2 million and $ 2.6 million, respectively. For the three and nine months ended September 30, 2022, we incurred interest costs of $ 1.2 million and $ 2.1 million, respectively, of which we capitalized $ 0.2 million and $ 0.5 million, respectively. Included in the construction in progress balance at September 30, 2023 and December 31, 2022 is $ 3.7 million and $ 2.0 million in retainage, respectively. Depreciation and amortization expense for property and equipment was $ 27.9 million and $ 80.0 million for the three and nine months ended September 30, 2023, respectively. Depreciation and amortization expense for property and equipment was $ 22.5 million and $ 64.7 million for the three and nine months ended September 30, 2022, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 5. GOODWILL AND INTANGIBLE ASSETS, NET As of both September 30, 2023 and December 31, 2022, goodwill was $ 51.9 million. We have selected June 30 as our annual goodwill impairment testing date. We performed a qualitative impairment test of our goodwill and concluded that, as of June 30, 2023, it was more likely than not that the fair value exceeded the carrying value and therefore goodwill was no t impaired. As of September 30, 2023 and December 31, 2022, there were no indicators of impairment. In connection with our marketing initiatives, we purchased the naming rights to the downtown Oklahoma City arena that is home to the Oklahoma City Thunder National Basketball Association franchise. Under the terms of the naming rights agreement, we committed to make payments escalating annually from $ 4.0 million in 2021 to $ 6.1 million in 2035. We also made a $ 1.5 million one-time payment in July 2021 to cover sponsorship rights leading up to the 2021-2022 season. Upon the conclusion of the initial term, the agreement may be extended upon the mutual agreement of both parties for an additional five-year period. The cost of the naming rights has been recorded as an intangible asset with an offsetting liability as of the date of the contract. The intangible asset is being amortized over the life of the agreement on a straight line basis that commenced in June 2021. The difference between the present value of the offsetting liability and actual cash payments is being relieved through sales and marketing expense using the effective interest method over the life of the agreement. All of our intangible assets other than goodwill are considered to have definite lives and, as such, are subject to amortization. The following tables present the components of intangible assets within our consolidated balance sheets: September 30, 2023 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 13.1 $ 60,199 $ ( 9,111 ) $ 51,088 Total $ 60,199 $ ( 9,111 ) $ 51,088 December 31, 2022 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 13.8 $ 60,199 $ ( 6,182 ) $ 54,017 Total $ 60,199 $ ( 6,182 ) $ 54,017 Amortization of intangible assets for the three and nine months ended September 30, 2023 was $ 0.9 million and $ 2.9 million, respectively. Amortization of intangible assets for the three and nine months ended September 30, 2022 was $ 0.9 million and $ 3.0 million, respectively. We estimate the aggregate amortization expense will be $ 1.0 million for the remainder of 2023 and $ 3.9 million for each of 2024, 2025, 2026, 2027 and 20 28. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 6. LONG-TERM DEBT Long-term debt consisted of the following: September 30, 2023 December 31, 2022 July 2022 Revolving Credit Facility due July 29, 2027 $ 29,000 $ 29,000 Total long-term debt $ 29,000 $ 29,000 On December 7, 2017 , we entered into a senior secured term credit agreement (as amended from time to time, the “2017 Term Credit Agreement”), pursuant to which JPMorgan Chase Bank, N.A., Bank of America, N.A. and Kirkpatrick Bank made certain term loans to us (the “2017 Term Loans”). Our obligations under the 2017 Term Loans were secured by a mortgage and first priority security interest in our corporate headquarters property. The 2017 Term Loans were due to mature on September 7, 2025 and bore interest, at our option, at either (a) a prime rate plus 1.0 % or (b) an adjusted LIBOR rate for the interest period in effect for such 2017 Term Loan plus 1.5 %. As discussed below, the 2017 Term Loans were repaid in full on May 4, 2022 and the 2017 Term Credit Agreement was terminated. At the time of payoff, unamortized debt issuance costs totaling $ 0.1 million were written off. On May 4, 2022 (the “May 2022 Facility Closing Date”), Paycom Payroll, LLC (the “Borrower”), Software, and certain other subsidiaries of Software (collectively, the “Guarantors,” and collectively with the Borrower, the “Loan Parties”), entered into a credit agreement (as amended from time to time, the “May 2022 Revolving Credit Agreement”) with Bank of America, N.A., as a lender, swingline lender and letters of credit issuer, the lenders from time to time party thereto and Bank of America, N.A., as the administrative agent. The May 2022 Revolving Credit Agreement provided for a senior secured revolving credit facility (the “May 2022 Facility”) in the initial aggregate principal amount of up to $ 250.0 million, and the ability to request an incremental facility of up to an additional $ 100.0 million, subject to obtaining additional lender commitments and certain approvals and satisfying certain other conditions. The May 2022 Facility included a $ 25.0 million sublimit for swingline loans and a $ 2.5 million sublimit for letters of credit. On June 7, 2022, the aggregate commitments under the May 2022 Revolving Credit Agreement were increased from $ 250.0 million to $ 350.0 million. Our obligations under the May 2022 Facility were secured by a senior security interest in all personal property of the Loan Parties. The May 2022 Facility was scheduled to mature on May 4, 2027 . On the May 2022 Facility Closing Date, we borrowed $ 29.0 million under the May 2022 Facility to repay the 2017 Term Loans, along with accrued interest, expenses and fees. The loan on the May 2022 Facility Closing Date bore interest at the BSBY rate plus 1.125 %. In connection with the repayment of the 2017 Term Loans, the 2017 Term Credit Agreement was terminated on May 4, 2022 . As discussed below, the May 2022 Facility was repaid in full on July 29, 2022 and the May 2022 Revolving Credit Agreement was terminated. On July 29, 2022 (the “July 2022 Facility Closing Date”), the Borrower, Software, and certain other subsidiaries of Software entered into a new credit agreement (the “July 2022 Credit Agreement”) with JPMorgan Chase Bank, N.A., as a lender, swingline lender and issuing bank, the lenders from time to time party thereto (collectively with JPMorgan Chase Bank, N.A., the “July 2022 Lenders”), and JPMorgan Chase Bank, N.A., as the administrative agent. The July 2022 Credit Agreement initially provided for a senior secured revolving credit facility (the “July 2022 Revolving Credit Facility”) in the aggregate principal amount of up to $ 650.0 million, and the ability to request an incremental facility of up to an additional $ 500.0 million, subject to obtaining additional lender commitments and certain approvals and satisfying certain other conditions. The July 2022 Credit Agreement includes a $ 25.0 million sublimit for swingline loans and a $ 6.5 million sublimit for letters of credit. The July 2022 Credit Agreement also initially provided for a senior secured delayed draw term loan (the “July 2022 Term Loan Facility”) in the aggregate amount of up to $ 750.0 million. As discussed below, the July 2022 Term Loan Facility was terminated on July 28, 2023. All loans under the July 2022 Credit Agreement will mature on July 29, 2027 (the “Scheduled Maturity Date”). Unamortized debt issuance costs of $ 4.2 million as of September 30, 2023 are included in “Other assets” on our consolidated balance sheets. The borrowings under the July 2022 Credit Agreement bear interest at a rate per annum equal to (i) the Alternate Base Rate (“ABR”) plus an applicable margin (“ABR Loans”) or (ii) (x) the term Secured Overnight Financing Rate (“SOFR”) plus 0.10 % (the “Adjusted Term SOFR Rate”) or (y) the daily SOFR plus 0.10%, in each case plus an applicable margin (“SOFR Rate Loans”). ABR is calculated as the highest of (i) the rate of interest last quoted by The Wall Street Journal in the United States as the prime rate in effect, (ii) the federal funds rate plus 0.5 % and (iii) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00 %; provided that, if the ABR as determined pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00%. The applicable margin for ABR Loans is (i) 0.25 % if the Company’s consolidated leverage ratio is less than 1.0 to 1.0; (ii) 0.50 % if the Company’s consolidated leverage ratio is greater than or equal to 1.0 to 1.0 but less than 2.0 to 1.0; (iii) 0.75 % if the Company’s consolidated leverage ratio is greater than or equal to 2.0 to 1.0 but less than 3.0 to 1.0; or (iv) 1.00 % if the Company’s consolidated leverage ratio is greater than or equal to 3.0 to 1.0. The applicable margin for SOFR Rate Loans is (i) 1.25 % if the Company’s consolidated leverage ratio is less than 1.0 to 1.0; (ii) 1.5 % if the Company’s consolidated leverage ratio is greater than or equal to 1.0 to 1.0 but less than 2.0 to 1.0; (iii) 1.75 % if the Company’s consolidated leverage ratio is greater than or equal to 2.0 to 1.0 but less than 3.0 to 1.0; or (iv) 2.00 % if the Company’s consolidated leverage ratio is greater than or equal to 3.0 to 1.0. We are required to pay a quarterly commitment fee on the daily amount of the undrawn portion of the revolving commitments under the July 2022 Revolving Credit Facility and, prior to its termination, a quarterly ticking fee on the daily amount of the undrawn portion of the July 2022 Term Loan Facility, in each case at a rate per annum of (i) 0.20 % if the Company’s consolidated leverage ratio is less than 1.0 to 1.0; (ii) 0.225 % if the Company’s consolidated leverage ratio is greater than or equal to 1.0 to 1.0 but less than 2.0 to 1.0; (iii) 0.25 % if the Company’s consolidated leverage ratio is greater than or equal to 2.0 to 1.0 but less than 3.0 to 1.0; or (iv) 0.275 % if the Company’s consolidated leverage ratio is greater than or equal to 3.0 to 1.0. We are also required to pay customary letter of credit fees upon drawing any letter of credit. The July 2022 Revolving Credit Facility provides for no scheduled principal amortization prior to the Scheduled Maturity Date. Subject to certain conditions set forth in the July 2022 Credit Agreement, we may borrow, prepay and reborrow under the July 2022 Revolving Credit Facility and terminate or reduce the July 2022 Lenders’ commitments at any time prior to the Scheduled Maturity Date. The proceeds of the loans and letters of credit under the July 2022 Credit Agreement are to be used for ongoing working capital and general corporate purposes, permitted acquisitions, share repurchases and refinancing the May 2022 Facility. On the July 2022 Facility Closing Date, we borrowed $ 29.0 million under the July 2022 Revolving Credit Facility to repay the outstanding indebtedness under the May 2022 Facility, along with accrued interest, expenses and fees. The loan bears interest at the Adjusted Term SOFR Rate for the interest period in effect plus 1.25 %. In connection with the repayment of the May 2022 Facility, the May 2022 Revolving Credit Agreement was terminated on July 29, 2022 . Under the July 2022 Credit Agreement, we are required to maintain as of the end of each fiscal quarter a consolidated interest coverage ratio of not less than 3.0 to 1.0 and a consolidated leverage ratio of not greater than 3.75 to 1.0 initially, stepping down to 3.0 to 1.0 at intervals thereafter. Additionally, the July 2022 Credit Agreement contains customary affirmative and negative covenants, including covenants limiting our ability to, among other things, grant liens, incur debt, effect certain mergers, make investments, dispose of assets, enter into certain transactions, including swap agreements and sale and leaseback transactions, pay dividends or distributions on our capital stock, and enter into transactions with affiliates, in each case subject to customary exceptions. As of September 30, 2023, we were in compliance with these covenants. Our obligations under the July 2022 Credit Agreement are secured by a senior security interest in all personal property of the Loan Parties. The events of default under the July 2022 Credit Agreement include, among others, payment defaults, breaches of covenants, defaults under the related loan documents, material misrepresentations, cross defaults with certain other material indebtedness, bankruptcy and insolvency events, judgment defaults, certain events related to plans subject to the Employee Retirement Income Security Act of 1974, as amended, invalidity of the July 2022 Credit Agreement or the related loan documents and change in control events. The occurrence of an event of default could result in the acceleration of our obligations under the July 2022 Credit Agreement, the requirement to post cash collateral with respect to letters of credit, the termination of the July 2022 Lenders’ commitments and a 2.0 % increase in the rate of interest. On July 28, 2023 , the Borrower, Software, and certain other subsidiaries of Software entered into Amendment No. 2 to Credit Agreement (“Amendment No. 2”) with the July 2022 Lenders, pursuant to which, among other things, (i) the aggregate revolving commitments under the July 2022 Revolving Credit Facility were increased from $ 650.0 million to $ 1.0 billion, (ii) the July 2022 Term Loan Facility was terminated and (iii) the July 2022 Credit Agreement was amended in contemplation of the formation and future operating activities of the Paycom Client Trust (the “Client Trust”) and Paycom National Trust Bank, NA (the “Trust Bank”). The Company intends to form the Client Trust to hold client payroll and related funds and the Trust Bank to serve as trustee of the Client Trust. We did no t make any draws under the July 2022 Term Loan Facility prior to its termination on July 28, 2023 . At the time of termination, unamortized debt issuance costs totaling $ 1.2 million were written off and recognized as a loss on extinguishment of debt, which is included in Other income, net in the consolidated statements of comprehensive income. As of September 30, 2023 and December 31, 2022, the carrying value of our total long-term debt approximated its fair value as of such date. The fair value of our long-term debt is estimated based on the borrowing rates currently available to us for bank loans with similar terms and maturities. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 7. DERIVATIVE INSTRUMENTS In December 2017, we entered into a floating-to-fixed interest rate swap agreement to limit the exposure to floating interest rate risk related to the 2017 Term Loans. We do not hold derivative instruments for trading or speculative purposes. The interest rate swap agreement effectively converted a portion of the variable interest rate payments to fixed interest rate payments. We account for our derivatives under ASC Topic 815, “Derivatives and Hedging,” and recognize all derivative instruments in the consolidated balance sheets at fair value as either short-term or long-term assets or liabilities based on their anticipated settlement date. See Note 9, “Fair Value of Financial Instruments”. We have elected not to designate our interest rate swap as a hedge; therefore, changes in the fair value of the derivative instrument were recognized in our consolidated statements of comprehensive income within Other income (expense), net. The objective of the interest rate swap was to reduce the variability in the forecasted interest payments of the 2017 Term Loans, which was based on a one-month USD LIBOR rate versus a fixed interest rate of 2.54 % on a notional value of $ 35.5 million. Under the terms of the interest rate swap agreement, we received quarterly variable interest payments based on the LIBOR rate and paid interest at a fixed rate. As further discussed in Note 6, on May 4, 2022, we repaid the 2017 Term Loans and terminated the 2017 Term Credit Agreement. The interest rate swap agreement had a maturity date of September 7, 2025 . On August 24, 2022, we terminated the interest rate swap by settling the contract, which resulted in a cash receipt of $ 0.5 million. The realized gain from the settlement of the interest rate swap contract is included in Other income (expense), net in the consolidated statements of comprehensive income. |
Corporate Investments and Funds
Corporate Investments and Funds Held For Clients | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Corporate Investments and Funds Held For Clients | 8. CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS The tables below present our cash and cash equivalents, the funds held for clients cash and cash equivalents as well as the investments that were included within funds held for clients on the consolidated balance sheets: September 30, 2023 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 484,028 $ — $ — $ 484,028 Funds held for clients cash and cash equivalents 1,702,301 — — 1,702,301 Available-for-sale securities (1) : Certificates of deposit 25,000 — — 25,000 U.S. treasury securities 174,755 — ( 2,710 ) 172,045 Total investments $ 2,386,084 $ — $ ( 2,710 ) $ 2,383,374 December 31, 2022 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 400,730 $ — $ — $ 400,730 Funds held for clients cash and cash equivalents 2,008,365 — — 2,008,365 Available-for-sale securities (1) : Certificates of deposit 25,000 — — 25,000 U.S. treasury securities 174,367 — ( 4,757 ) 169,610 Total investments $ 2,608,462 $ — $ ( 4,757 ) $ 2,603,705 (1) All available-for-sale securities were included within the funds held for clients. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2023, are as follows: September 30, 2023 Securities in unrealized loss position for less than twelve months Securities in unrealized loss position for greater than twelve months Total Type of issue Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value U.S. treasury securities $ — $ — $ ( 2,710 ) $ 172,045 $ ( 2,710 ) $ 172,045 Total $ — $ — $ ( 2,710 ) $ 172,045 $ ( 2,710 ) $ 172,045 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2022, are as follows: December 31, 2022 Securities in unrealized loss position for less than twelve months Securities in unrealized loss position for greater than twelve months Total Type of issue Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value U.S. treasury securities $ ( 4,757 ) $ 169,610 $ — $ — $ ( 4,757 ) $ 169,610 Total $ ( 4,757 ) $ 169,610 $ — $ — $ ( 4,757 ) $ 169,610 We did not make any reclassification adjustments out of accumulated other comprehensive income for realized gains or losses on the sale or maturity of available-for-sale securities for the nine months ended September 30, 2023 or 2022. There were no realized gains or losses on the sale of available-for-sale securities for the nine months ended September 30, 2023 or 2022. We regularly review the composition of our investment portfolio and did no t recognize any credit impairment losses during the nine months ended September 30, 2023 or 2022. The Company believes it is probable that the principal and interest will be collected in accordance with contractual terms and that the unrealized losses on these securities were due to changes in interest rates and were not due to increased credit risk. The U.S. treasury securities held a rating of AA+ as of September 30, 2023. Expected maturities of available-for-sale securities at September 30, 2023 are as follows: Expected maturity Amortized cost Fair value One year or less $ 199,755 $ 197,045 One year to five years $ — $ — Total available-for-sale securities $ 199,755 $ 197,045 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 9. FAIR VALUE OF FINANCIAL INSTRUMENTS Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients, client funds obligation and long-term debt. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients and client funds obligation approximates fair value due to the short-term nature of the instruments. See Note 6 for discussion of the fair value of our debt. Our corporate investments consist primarily of money market funds and demand deposit accounts and are classified as cash and cash equivalents on the consolidated balance sheets. As discussed in Note 2, we typically invest the funds held for clients in money market funds, demand deposit accounts, certificates of deposit and commercial paper with an original maturity of less than three months and classify these items as cash and cash equivalents within the funds held for clients line item in the consolidated balance sheets. Short-term investments in certificates of deposit and commercial paper with an original maturity greater than three months are classified as available-for-sale securities and are also included within the funds held for clients line item. These available-for-sale securities are recognized in the consolidated balance sheets at fair value, with the difference between the amortized cost and fair value of these available-for-sale securities recorded as unrealized net gains (losses) within comprehensive earnings (loss) in our consolidated statements of comprehensive income. See Note 8 for additional information. We also invest funds held for clients in U.S. treasury securities with initial maturity durations greater than one year. These U.S. treasury securities are classified as available-for-sale securities and included within the funds held for clients line item. The unrealized gains and losses associated with these available-for-sale securities are included within comprehensive earnings (loss) in our consolidated statements of comprehensive income. See Note 8 for additional information. As discussed in Note 7, during the year ended December 31, 2017, we entered into an interest rate swap. While outstanding, the interest rate swap was measured on a recurring basis based on quoted prices for similar financial instruments and other observable inputs recognized at fair value. We terminated the interest rate swap on August 24, 2022. The accounting standard for fair value measurements establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 – Observable inputs such as quoted prices in active markets • Level 2 – Inputs other than quoted prices in active markets for identical assets or liabilities that are observable either directly or indirectly or quoted prices that are not active • Level 3 – Unobservable inputs in which there is little or no market data Included in the following tables are the Company’s major categories of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 25,000 $ — $ 25,000 U.S. treasury securities $ — $ 172,045 $ — $ 172,045 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 25,000 $ — $ 25,000 U.S. treasury securities $ — $ 169,610 $ — $ 169,610 |
Employee Savings Plan and Emplo
Employee Savings Plan and Employee Stock Purchase Plan | 9 Months Ended |
Sep. 30, 2023 | |
Compensation Related Costs [Abstract] | |
Employee Savings Plan and Employee Stock Purchase Plan | 10. EMPLOYEE SAVINGS PLAN AND EMPLOYEE STOCK PURCHASE PLAN Employees over the age of 18 who have completed ninety days of service are eligible to participate in our 401(k) plan. We have made a Qualified Automatic Contribution Arrangement (“QACA”) election, whereby the Company matches the contribution of our employees equal to 100 % of the first 1 % of salary deferrals and 50 % of salary deferrals between 2 % and 6 %, up to a maximum matching contribution of 3.5 % of an employee’s salary each plan year. We are allowed to make additional discretionary matching contributions and discretionary profit sharing contributions. Employees are 100 % vested in amounts attributable to salary deferrals and rollover contributions. The QACA matching contributions as well as the discretionary matching and profit sharing contributions vest 100 % after two years of employment from the date of hire. Matching contributions were $ 4.0 million and $ 11.8 million for the three and nine months ended September 30, 2023, respectively. Matching contributions were $ 3.3 million and $ 9.9 million for the three and nine months ended September 30, 2022, respectively. The ESPP has overlapping offering periods, with each offering period lasting approximately 24 months. At the beginning of each offering period, eligible employees may elect to contribute, through payroll deductions, up to 10 % of their compensation, subject to an annual per-employee maximum of $ 25,000 . Eligible employees purchase shares of the Company’s common stock at a price equal to 85 % of the fair market value of the shares on the exercise date. The maximum number of shares that may be purchased by a participant during each offering period is 2,000 shares, subject to limits specified by the Internal Revenue Service. The shares reserved for purposes of the ESPP are shares we purchase in the open market. The maximum aggregate number of shares of the Company’s common stock that may be purchased by all participants under the ESPP is 2.0 million shares. Eligible employees purchased 52,323 and 40,997 shares of the Company’s common stock under the ESPP during the nine months ended September 30, 2023 and 2022, respectively. Compensation expense related to the ESPP is recognized on a straight-line basis over the requisite service period. Our compensation expense related to the ESPP was $ 0.9 million and $ 2.6 million for the three and nine months ended September 30, 2023, respectively. Our compensation expense related to the ESPP was $ 0.7 million and $ 2.1 million for the three and nine months ended September 30, 2022, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive equity incentive awards. The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 75,219 $ 52,153 $ 259,031 $ 201,438 Denominator: Basic weighted average shares outstanding 57,825 57,865 57,871 57,949 Dilutive effect of unvested restricted stock and restricted stock units 141 168 185 244 Diluted weighted average shares outstanding 57,966 58,033 58,056 58,193 Earnings per share: Basic $ 1.30 $ 0.90 $ 4.48 $ 3.48 Diluted $ 1.30 $ 0.90 $ 4.46 $ 3.46 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 12. STOCK-BASED COMPENSATION Restricted Stock Awards In May 2023, the stockholders of the Company approved the Paycom Software, Inc. 2023 Long-Term Incentive Plan (the “2023 LTIP”), which provides for the granting of equity-based awards to the Company’s employees, contractors and outside directors. Subject to certain adjustments, the maximum number of shares of common stock that may be delivered pursuant to awards under the 2023 LTIP is 3,600,000 , subject to increase by any awards under the Paycom Software, Inc. 2014 Long-Term Incentive Plan (as amended, the “2014 LTIP”) (i) that are outstanding on or after May 1, 2023, and that, on or after such date, are forfeited, expire or are canceled (but excluding the restricted stock award granted to Mr. Richison on November 23, 2020); and (ii) any shares subject to awards relating to common stock under the 2014 LTIP that are settled in cash on or after May 1, 2023. During the nine months ended September 30, 2023, we issued an aggregate of 575,467 restricted shares of common stock under the 2014 LTIP and the 2023 LTIP, consisting of 87,618 shares subject to market-based vesting conditions (“Market-Based Shares”) and 487,849 shares subject to time-based or no vesting conditions (“Time-Based Shares”). Market-Based Shares will vest 50 % on the first date, if any, that the arithmetic average of the Company’s volume weighted average price on each of the twenty consecutive trading days immediately preceding such date (the “VWAP Value”) equals or exceeds $ 404 per share and 50 % on the first date, if any, that the Company’s VWAP Value equals or exceeds $ 466 per share, in each case provided that (i) such date occurs on or before the eighth anniversary of the grant date and (ii) the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2014 LTIP or the 2023 LTIP, as applicable, and the applicable restricted stock award agreement. The Time-Based Shares granted to non-executive employees will vest over periods ranging from three to four years , provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2014 LTIP or the 2023 LTIP, as applicable, and the applicable restricted stock award agreement. The Time-Based Shares mentioned above include an aggregate of 5,523 Time-Based Shares issued to the non-employee members of the Board of Directors in May 2023 under the 2023 LTIP. Such shares of restricted stock will cliff-vest on the seventh day following the first anniversary of the date of grant, provided that such director is providing services to the Company through the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement. The following table summarizes restricted stock awards activity for the nine months ended September 30, 2023: Time-Based Market-Based Restricted Stock Awards Restricted Stock Awards Shares Weighted Average Shares Weighted Average Unvested shares of restricted stock outstanding at December 31, 2022 479.1 $ 315.04 1,677.0 $ 116.36 Granted 487.8 $ 313.36 87.6 $ 316.12 Vested ( 131.5 ) $ 293.48 — $ — Forfeited ( 61.2 ) $ 325.79 ( 15.7 ) $ 298.67 Unvested shares of restricted stock outstanding at September 30, 2023 774.2 $ 316.79 1,748.9 $ 124.73 Restricted Stock Units In February 2023, we issued, in the aggregate, 5,232 shares of common stock upon the vesting of performance-based restricted stock units (“PSUs”) awarded to certain executive officers in February 2021. The number of shares delivered upon vesting of the PSUs was determined based on the Company’s achievement of a Relative Total Stockholder Return (“Relative TSR”) performance goal, which compared the Company’s Total Stockholder Return (“TSR”) to the TSR of a peer group for the two-year performance period that commenced on January 1, 2021 and ended on December 31, 2022 . For purposes of the PSU awards, TSR was determined by dividing (i) the sum of (A) the average VWAP of a share of the Company’s common stock or the common stock of a peer company, as applicable, during the final 60 trading day period of the applicable performance period, less (ii) the average VWAP of a share of the Company’s common stock or the common stock of a peer company, as applicable, during the 60 trading day period ending on December 31, 2020, plus (iii) the sum of all dividends which are paid by the Company (or the member of the peer group) to its stockholders, assuming such dividends are reinvested in the applicable company through the applicable performance period, by (ii) the average VWAP of a share of the Company’s common stock or the common stock of a peer company, as applicable, during the 60 trading day period ending on December 31, 2020. For purposes of the PSU awards granted in 2021, the Company’s peer group includes 34 publicly traded companies, which were reflective of the S&P 500 Software & Services index on the grant date. On April 3, 2023, the Company announced the resignation of Justin Long from the position of Vice President of Operations of the Company, effective March 28, 2023. In connection with Mr. Long’s resignation, the Company, Paycom Payroll, LLC and Mr. Long entered into a Severance and Release Agreement (the “Severance Agreement”), which became effective on April 8, 2023, pursuant to which 1,505 Time-Based Shares previously granted to Mr. Long accelerated in vesting. On May 2, 2023, the Company issued the following awards to executive officers under the 2023 LTIP: (i) an aggregate of 39,131 PSUs; (ii) an aggregate of 8,695 time-based restricted stock units (“RSUs”); and (iii) an aggregate of 142,000 Time-Based Shares. The number of shares deliverable upon vesting of such PSUs will be determined based on achievement of pre-established performance goals. The performance goals vary for each executive officer but are based on the Company’s revenue, adjusted EBITDA, the daily volume weighted average price of the Company’s common stock and annual revenue retention rate, in each case for the one-year performance period from January 1, 2023 to December 31, 2023. The PSUs will be eligible to vest following the performance period, but no later than February 29, 2024, provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock unit award agreement. The RSUs will vest in three equal annual tranches over a period of approximately two and a half years, provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock unit award agreement. The Time-Based Shares will vest in four annual tranches over a period of approximately three and a half years, provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement. The following table summarizes PSU and RSU activity for the nine months ended September 30, 2023: Time RSUs PSUs Units Weighted Average Units Weighted Average Unvested restricted stock units outstanding at December 31, 2022 0.5 $ 377.01 77.8 $ 409.13 Granted 8.8 $ 297.49 39.1 $ 244.39 Vested ( 0.1 ) $ 377.01 ( 5.2 ) $ 526.66 Forfeited — $ — ( 3.5 ) $ 526.66 Unvested restricted stock units outstanding at September 30, 2023 (1) 9.2 $ 300.74 108.2 $ 340.08 (1) A maximum of 211,806 shares could be delivered upon settlement of PSUs based upon the Company’s achievement of the applicable performance goals over the applicable performance periods. For the three and nine months ended September 30, 2023, our total stock-based compensation expense was $ 33.2 million and $ 96.4 million, respectively. For the three and nine months ended September 30, 2022, our total stock-based compensation expense was $ 24.5 million and $ 70.8 million, respectively. The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested restricted stock awards and unvested restricted stock units awards as of September 30, 2023. Restricted Stock Restricted Stock Awards Units Unrecognized compensation cost $ 270,993 $ 8,803 Weighted average period for recognition (years) 2.5 0.8 We capitalized stock-based compensation costs related to software developed for internal use of $ 3.8 million and $ 11.5 million for the three and nine months ended September 30, 2023, respectively. We capitalized stock-based compensation costs related to software developed for internal use of $ 2.4 million and $ 6.5 million for the three and nine months ended September 30, 2022, respectively. In May 2023, our Board of Directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. All unvested shares of restricted stock, RSUs and PSUs currently outstanding are entitled to receive dividends or dividend equivalents, provided that such dividends or dividend equivalents are withheld by the Company and distributed to the applicable holder upon the release of restrictions on such shares of restricted stock, RSUs or PSUs ( i.e. , upon vesting). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES We are involved in various legal proceedings in the ordinary course of business. Although we cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on our business, financial condition, results of operations and cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. INCOME TAXES The Company’s effective income tax rate was 28.1 % and 26.9 % for the nine months ended September 30, 2023 and 2022, respectively. The increase in effective tax rate for the nine months ended September 30, 2023 was related to a decrease of excess tax benefits from stock-based compensation. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. SUBSEQUENT EVENTS On October 12, 2023, the Company issued an aggregate of 12,150 restricted shares of common stock to certain non-executive employees under the 2023 LTIP, consisting of Time-Based Shares that will vest in annual tranches over three years, provided that the recipient is employed by, or providing services to, the Company on the applicable vesting date, and subject to the terms and conditions of the 2023 LTIP and the applicable restricted stock award agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements and notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes presented in the Form 10-K. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results expected for the full year. |
Recently Adopted / Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. Prior to August 24, 2022, our floating-to-fixed interest rate swap was outstanding to offset the rate variability associated with our outstanding indebtedness. As discussed in Note 7, the interest rate swap was terminated on August 24, 2022. As a result, the adoption of ASU 2020-04 had no material impact on our unaudited interim consolidated financial statements. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848) Scope” (“ASU 2021-01”), which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that are affected by the discounting transition. ASU 2021-01 amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. As discussed in Note 7, the interest rate swap was terminated on August 24, 2022. As a result, the adoption of ASU 2021-01 had no material impact on our unaudited interim consolidated financial statements. Recently Issued Accounting Pronouncements Accounting pronouncements issued, but not effective until after September 30, 2023, are not expected to have a significant impact on our consolidated financial position or results of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, loss contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could materially differ from these estimates. |
Seasonality | Seasonality Our revenues are seasonal in nature and generally we expect our first and fourth quarter recurring revenues to be higher than other quarters during the year. Recurring revenues include revenues relating to the annual processing of payroll tax filing forms and Affordable Care Act form filing requirements and revenues from processing unscheduled payroll runs (such as bonuses) for our clients. As payroll tax forms are typically processed in the first quarter of the year, first quarter recurring revenues and margins are positively impacted. In addition, unscheduled payroll runs at the end of the year often result in increased recurring revenues in the fourth quarter. These seasonal fluctuations in revenues can also have an impact on gross profits. Historical results impacted by these seasonal trends should not be considered a reliable indicator of our future results of operations. |
Funds Held for Clients and Client Funds Obligation | Funds Held for Clients and Client Funds Obligation As part of our payroll and tax filing application, we (i) collect client funds to satisfy their respective federal, state and local employment tax obligations, (ii) remit such funds to the appropriate taxing authorities and accounts designated by our clients, and (iii) manage client tax filings and any related correspondence with taxing authorities. Amounts collected by us from clients for their federal, state and local employment taxes are invested by us, and we earn interest on these funds during the interval between receipt and disbursement. These investments are shown in our consolidated balance sheets as funds held for clients, and the associated liability for the tax filings is shown as client funds obligation. The liability is recorded in the accompanying consolidated balance sheets at the time we obtain the funds from clients. The client funds obligation represents liabilities that will be repaid within one year of the consolidated balance sheet date. As of September 30, 2023 and December 31, 2022, the funds held for clients were invested in money market funds, demand deposit accounts and certificates of deposit. Additionally, the funds held for clients were invested in U.S. treasury securities with an original maturity of greater than one year. Historically, we have also invested funds held for clients in commercial paper. Short-term investments in instruments with an original maturity greater than three months, including certificates of deposit, commercial paper and U.S. treasury securities, are classified as available-for-sale securities and are also included within the funds held for clients line item in the consolidated balance sheets. These available-for-sale securities are recorded in the consolidated balance sheets at fair value, with the difference between the amortized cost and fair value of these available-for-sale securities recorded as unrealized net gains (losses) on available-for-sale securities and are included within comprehensive earnings (loss) in the consolidated statements of comprehensive income. Funds held for clients are classified as a current asset in the consolidated balance sheets because the funds are held solely to satisfy the client funds obligation. Additionally, the funds held for clients is classified as restricted cash and restricted cash equivalents and presented within the reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents on the consolidated statements of cash flows. |
Stock Repurchase Plan | Stock Repurchase Plan In May 2016, our Board of Directors authorized a stock repurchase plan allowing for the repurchase of shares of our common stock in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs. Since the initial authorization of the stock repurchase plan, our Board of Directors has amended and extended and authorized new stock repurchase plans from time to time. Most recently, in August 2022, our Board of Directors authorized the repurchase of up to $ 1.1 billion of our common stock. As of September 30, 2023, there was $ 1.0 billion available for repurchases under our stock repurchase plan. Our stock repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions, shares withheld for taxes associated with the vesting of restricted stock and other corporate considerations. The current stock repurchase plan will expire on August 15, 2024 . During the nine months ended September 30, 2023, we repurchased an aggregate of 303,401 shares of our common stock at an average cost of $ 288.77 per share, including 43,891 shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of equity incentive awards. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Changes in Deferred Revenue Related to Material Rights | Changes in deferred revenue related to material rights for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 124,233 $ 108,880 $ 117,416 $ 101,426 Recognition of revenue included in beginning of period balance ( 5,592 ) ( 4,705 ) ( 16,185 ) ( 13,548 ) Contract balance, net of revenue recognized during the period 9,677 9,836 27,087 26,133 Balance, end of period $ 128,318 $ 114,011 $ 128,318 $ 114,011 |
Summary of Asset Balances and Related Amortization Expense For Contract Costs | The following tables present the asset balances and related amortization expense for these contract costs: As of and for the Three Months Ended September 30, 2023 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 350,486 $ 21,451 $ ( 13,901 ) $ 358,036 Costs to fulfill a contract $ 380,324 $ 32,680 $ ( 13,552 ) $ 399,452 As of and for the Three Months Ended September 30, 2022 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 295,986 $ 21,663 $ ( 11,530 ) $ 306,119 Costs to fulfill a contract $ 302,019 $ 30,195 $ ( 10,559 ) $ 321,655 As of and for the Nine Months Ended September 30, 2023 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 325,457 $ 72,885 $ ( 40,306 ) $ 358,036 Costs to fulfill a contract $ 338,895 $ 98,842 $ ( 38,285 ) $ 399,452 As of and for the Nine Months Ended September 30, 2022 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 272,919 $ 66,544 $ ( 33,344 ) $ 306,119 Costs to fulfill a contract $ 265,657 $ 85,644 $ ( 29,646 ) $ 321,655 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment and Accumulated Depreciation and Amortization | Property and equipment and accumulated depreciation and amortization were as follows: September 30, 2023 December 31, 2022 Property and equipment Software and capitalized software development costs $ 343,841 $ 270,645 Buildings 179,367 177,765 Computer equipment 152,676 133,715 Rental clocks 40,760 35,846 Furniture, fixtures and equipment 31,265 28,414 Other 18,306 17,321 766,215 663,706 Less: accumulated depreciation and amortization ( 408,947 ) ( 331,340 ) 357,268 332,366 Construction in progress 77,218 36,286 Land 33,796 33,796 Property and equipment, net $ 468,282 $ 402,448 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | All of our intangible assets other than goodwill are considered to have definite lives and, as such, are subject to amortization. The following tables present the components of intangible assets within our consolidated balance sheets: September 30, 2023 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 13.1 $ 60,199 $ ( 9,111 ) $ 51,088 Total $ 60,199 $ ( 9,111 ) $ 51,088 December 31, 2022 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 13.8 $ 60,199 $ ( 6,182 ) $ 54,017 Total $ 60,199 $ ( 6,182 ) $ 54,017 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: September 30, 2023 December 31, 2022 July 2022 Revolving Credit Facility due July 29, 2027 $ 29,000 $ 29,000 Total long-term debt $ 29,000 $ 29,000 |
Corporate Investments and Fun_2
Corporate Investments and Funds Held For Clients (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash and Cash Equivalents and Investments | The tables below present our cash and cash equivalents, the funds held for clients cash and cash equivalents as well as the investments that were included within funds held for clients on the consolidated balance sheets: September 30, 2023 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 484,028 $ — $ — $ 484,028 Funds held for clients cash and cash equivalents 1,702,301 — — 1,702,301 Available-for-sale securities (1) : Certificates of deposit 25,000 — — 25,000 U.S. treasury securities 174,755 — ( 2,710 ) 172,045 Total investments $ 2,386,084 $ — $ ( 2,710 ) $ 2,383,374 December 31, 2022 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 400,730 $ — $ — $ 400,730 Funds held for clients cash and cash equivalents 2,008,365 — — 2,008,365 Available-for-sale securities (1) : Certificates of deposit 25,000 — — 25,000 U.S. treasury securities 174,367 — ( 4,757 ) 169,610 Total investments $ 2,608,462 $ — $ ( 4,757 ) $ 2,603,705 (1) All available-for-sale securities were included within the funds held for clients. |
Summary of Unrealized Losses and Fair Values of Available-for-Sale Securities that have been in Unrealized Loss Position for Period of Less than and Greater than 12 Months | The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2023, are as follows: September 30, 2023 Securities in unrealized loss position for less than twelve months Securities in unrealized loss position for greater than twelve months Total Type of issue Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value U.S. treasury securities $ — $ — $ ( 2,710 ) $ 172,045 $ ( 2,710 ) $ 172,045 Total $ — $ — $ ( 2,710 ) $ 172,045 $ ( 2,710 ) $ 172,045 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2022, are as follows: December 31, 2022 Securities in unrealized loss position for less than twelve months Securities in unrealized loss position for greater than twelve months Total Type of issue Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value U.S. treasury securities $ ( 4,757 ) $ 169,610 $ — $ — $ ( 4,757 ) $ 169,610 Total $ ( 4,757 ) $ 169,610 $ — $ — $ ( 4,757 ) $ 169,610 |
Summary of Expected Maturities of Available for Sale Securities | Expected maturities of available-for-sale securities at September 30, 2023 are as follows: Expected maturity Amortized cost Fair value One year or less $ 199,755 $ 197,045 One year to five years $ — $ — Total available-for-sale securities $ 199,755 $ 197,045 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Major Categories of Assets and Liabilities Measured at Fair Value on Recurring Basis | Included in the following tables are the Company’s major categories of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 25,000 $ — $ 25,000 U.S. treasury securities $ — $ 172,045 $ — $ 172,045 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 25,000 $ — $ 25,000 U.S. treasury securities $ — $ 169,610 $ — $ 169,610 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Earnings Per Share | The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 75,219 $ 52,153 $ 259,031 $ 201,438 Denominator: Basic weighted average shares outstanding 57,825 57,865 57,871 57,949 Dilutive effect of unvested restricted stock and restricted stock units 141 168 185 244 Diluted weighted average shares outstanding 57,966 58,033 58,056 58,193 Earnings per share: Basic $ 1.30 $ 0.90 $ 4.48 $ 3.48 Diluted $ 1.30 $ 0.90 $ 4.46 $ 3.46 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Restricted Stock Unit and PSU Activity | The following table summarizes restricted stock awards activity for the nine months ended September 30, 2023: Time-Based Market-Based Restricted Stock Awards Restricted Stock Awards Shares Weighted Average Shares Weighted Average Unvested shares of restricted stock outstanding at December 31, 2022 479.1 $ 315.04 1,677.0 $ 116.36 Granted 487.8 $ 313.36 87.6 $ 316.12 Vested ( 131.5 ) $ 293.48 — $ — Forfeited ( 61.2 ) $ 325.79 ( 15.7 ) $ 298.67 Unvested shares of restricted stock outstanding at September 30, 2023 774.2 $ 316.79 1,748.9 $ 124.73 The following table summarizes PSU and RSU activity for the nine months ended September 30, 2023: Time RSUs PSUs Units Weighted Average Units Weighted Average Unvested restricted stock units outstanding at December 31, 2022 0.5 $ 377.01 77.8 $ 409.13 Granted 8.8 $ 297.49 39.1 $ 244.39 Vested ( 0.1 ) $ 377.01 ( 5.2 ) $ 526.66 Forfeited — $ — ( 3.5 ) $ 526.66 Unvested restricted stock units outstanding at September 30, 2023 (1) 9.2 $ 300.74 108.2 $ 340.08 (1) A maximum of 211,806 shares could be delivered upon settlement of PSUs based upon the Company’s achievement of the applicable performance goals over the applicable performance periods. |
Summary of Unrecognized Compensation Cost and Related Weighted Average Recognition Period Associated with Unvested restricted Stock Awards and Unvested Restricted Stock Units | The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested restricted stock awards and unvested restricted stock units awards as of September 30, 2023. Restricted Stock Restricted Stock Awards Units Unrecognized compensation cost $ 270,993 $ 8,803 Weighted average period for recognition (years) 2.5 0.8 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - Stock Repurchase Plan [Member] | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Summary Of Significant Accounting Policy [Line Items] | |
Available authorized repurchase amount | $ | $ 1,000,000,000 |
Stock repurchase plan expiration date | Aug. 15, 2024 |
Stock repurchased, average costs per share | $ / shares | $ 288.77 |
Repurchases of common stock, shares | shares | 303,401,000 |
Certain Employees [Member] | |
Summary Of Significant Accounting Policy [Line Items] | |
Shares withheld to satisfy tax withholding obligations | shares | 43,891,000 |
Maximum [Member] | |
Summary Of Significant Accounting Policy [Line Items] | |
Stock repurchase plan, authorized amount | $ | $ 1,100,000,000 |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Deferred Revenue Related to Material Right (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Balance, beginning of period | $ 124,233 | $ 108,880 | $ 117,416 | $ 101,426 |
Recognition of revenue included in beginning of period balance | (5,592) | (4,705) | (16,185) | (13,548) |
Contract balance, net of revenue recognized during the period | 9,677 | 9,836 | 27,087 | 26,133 |
Balance, end of period | $ 128,318 | $ 114,011 | $ 128,318 | $ 114,011 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue expect to recognize description | We expect to recognize $6.2 million of deferred revenue related to material right performance obligations in the remainder of 2023, $21.8 million of such deferred revenue in 2024, and $100.3 million of such deferred revenue thereafter. |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail 1) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenue expect to recognize amount | $ 6.2 |
Deferred revenue expect to recognize period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenue expect to recognize amount | $ 21.8 |
Deferred revenue expect to recognize period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenue expect to recognize amount | $ 100.3 |
Deferred revenue expect to recognize period |
Revenue - Summary of Asset Bala
Revenue - Summary of Asset Balances and Related Amortization Expense For Contract Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Costs to Obtain a Contract [Member] | ||||
Capitalized Contract Cost [Line Items] | ||||
Beginning Balance | $ 350,486 | $ 295,986 | $ 325,457 | $ 272,919 |
Capitalization of Costs | 21,451 | 21,663 | 72,885 | 66,544 |
Amortization | (13,901) | (11,530) | (40,306) | (33,344) |
Ending Balance | 358,036 | 306,119 | 358,036 | 306,119 |
Costs to Fulfill a Contract [Member] | ||||
Capitalized Contract Cost [Line Items] | ||||
Beginning Balance | 380,324 | 302,019 | 338,895 | 265,657 |
Capitalization of Costs | 32,680 | 30,195 | 98,842 | 85,644 |
Amortization | (13,552) | (10,559) | (38,285) | (29,646) |
Ending Balance | $ 399,452 | $ 321,655 | $ 399,452 | $ 321,655 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 766,215 | $ 663,706 |
Less: accumulated depreciation and amortization | (408,947) | (331,340) |
Property and equipment, net | 468,282 | 402,448 |
Software And Capitalized Software Development Costs [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 343,841 | 270,645 |
Buildings [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 179,367 | 177,765 |
Computer Equipment [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 152,676 | 133,715 |
Rental Clocks [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 40,760 | 35,846 |
Furniture, Fixtures and Equipment [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 31,265 | 28,414 |
Other [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 18,306 | 17,321 |
Property and Equipment, net, Excluding Land and Construction in Progress [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 357,268 | 332,366 |
Construction in Progress [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 77,218 | 36,286 |
Land [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | $ 33,796 | $ 33,796 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property and Equipment [Line Items] | |||||
Computer software development costs capitalized | $ 26,600 | $ 17,000 | $ 70,800 | $ 48,800 | |
Interest and Debt Expense | 1,300 | 1,200 | 4,200 | 2,100 | |
Interest Costs Capitalized | 1,200 | 200 | 2,600 | 500 | |
Retainage amount included in construction in progress | 3,700 | 3,700 | $ 2,000 | ||
Depreciation and amortization | 15,608 | 12,625 | 44,660 | 36,378 | |
Property and Equipment [Member] | |||||
Property and Equipment [Line Items] | |||||
Depreciation and amortization | $ 27,900 | $ 22,500 | $ 80,000 | $ 64,700 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 51,889,000 | $ 51,889,000 | $ 51,889,000 | |||
Goodwill impairment amount | 0 | |||||
Amortization of intangible assets | 900,000 | $ 900,000 | 2,900,000 | $ 3,000,000 | ||
Estimated remaining amortization expense for remainder of 2023 | 1,000,000 | 1,000,000 | ||||
Estimated remaining amortization expense in 2024 | 3,900,000 | 3,900,000 | ||||
Estimated remaining amortization expense in 2025 | 3,900,000 | 3,900,000 | ||||
Estimated remaining amortization expense in 2026 | 3,900,000 | 3,900,000 | ||||
Estimated remaining amortization expense in 2027 | 3,900,000 | 3,900,000 | ||||
Estimated remaining amortization expense in 2028 | 3,900,000 | 3,900,000 | ||||
Sponsorship Rights [Member] | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
One-time payment for intangible asset agreement | $ 1,500,000 | |||||
Naming Rights [Member] | Minimum [Member] | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Annual payments for intangible asset agreement | 4,000,000 | |||||
Naming Rights [Member] | Maximum [Member] | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Annual payments for intangible asset agreement | 6,100,000 | |||||
Goodwill [Member] | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 51,900,000 | $ 51,900,000 | $ 51,900,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 60,199 | $ 60,199 |
Accumulated Amortization | (9,111) | (6,182) |
Net | 51,088 | 54,017 |
Naming Rights [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 60,199 | 60,199 |
Accumulated Amortization | (9,111) | (6,182) |
Net | $ 51,088 | $ 54,017 |
Weighted average remaining useful life | 13 years 1 month 6 days | 13 years 9 months 18 days |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 29,000 | $ 29,000 |
July 2022 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit | $ 29,000 | $ 29,000 |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended | ||
Jul. 29, 2022 | May 04, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
2022 Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maturity date | May 04, 2027 | |||
July 2022 Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maturity date | Jul. 29, 2027 | |||
July 2022 Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maturity date | Jul. 29, 2027 | Jul. 29, 2027 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||||
Jul. 28, 2023 | Jul. 29, 2022 | May 04, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 07, 2022 | |
2022 Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of draws made | no | |||||
2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Agreement termination date | Jul. 29, 2022 | |||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | |||||
Line of credit facility, maturity date | May 04, 2027 | |||||
Line of credit | $ 29,000,000 | |||||
Additional credit facility capacity, subject to certain conditions | 100,000,000 | |||||
Line of credit facility, borrowings outstanding | 29,000,000 | |||||
2022 Revolving Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | |||||
2022 Revolving Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 | |||||
2022 Revolving Credit Agreement [Member] | Swingline Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | |||||
2022 Revolving Credit Agreement [Member] | Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000 | |||||
July 2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.25% | |||||
Unamortized debt issuance costs written off | $ 1,200,000 | |||||
Line of credit facility, maximum borrowing capacity | $ 650,000,000 | |||||
Unamortized debt issuance cost | $ 4,200,000 | |||||
Line of credit facility, maturity date | Jul. 29, 2027 | |||||
Line of credit | $ 29,000,000 | |||||
Additional credit facility capacity, subject to certain conditions | $ 500,000,000 | |||||
Line of credit facility increase in rate of interest in event of default | 2% | |||||
Line of credit facility, borrowings outstanding | $ 29,000,000 | |||||
July 2022 Revolving Credit Agreement [Member] | Minimum [Member] | Amendment No. 2 [Mmber] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 650,000,000 | |||||
July 2022 Revolving Credit Agreement [Member] | Swingline Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | |||||
July 2022 Revolving Credit Agreement [Member] | Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 6,500,000 | |||||
July 2022 Revolving Credit Agreement [Member] | 2022 Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |||||
Line of credit facility, maturity date | Jul. 28, 2023 | |||||
July 2022 Revolving Credit Agreement [Member] | Federal Funds Rate Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.50% | |||||
July 2022 Revolving Credit Agreement [Member] | S O F R Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.10% | |||||
July 2022 Revolving Credit Agreement [Member] | S O F R Plus One Month Interest Period [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
July 2022 Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maturity date | Jul. 29, 2027 | Jul. 29, 2027 | ||||
Line of credit | $ 29,000,000 | $ 29,000,000 | ||||
Line of credit facility, borrowings outstanding | $ 29,000,000 | $ 29,000,000 | ||||
July 2022 Revolving Credit Facility [Member] | Maximum [Member] | Amendment No. 2 [Mmber] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||
2017 Term Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility agreement date | Dec. 07, 2017 | |||||
Agreement termination date | May 04, 2022 | |||||
2017 Term Credit Agreement [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs written off | $ 100,000 | |||||
2017 Term Credit Agreement [Member] | Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument maturity date | Sep. 07, 2025 | |||||
2017 Term Credit Agreement [Member] | Term Loan [Member] | Prime Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
2017 Term Credit Agreement [Member] | Term Loan [Member] | Adjusted London Interbank Offered Rate LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.50% | |||||
2017 Term Credit Agreement [Member] | July 2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Agreement termination date | Jul. 29, 2022 | |||||
Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | July 2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly commitment fee | 0.20% | |||||
Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | July 2022 Revolving Credit Agreement [Member] | S O F R Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings basis spread on variable rate | 1.25% | |||||
Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | July 2022 Revolving Credit Agreement [Member] | A B R Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.25% | |||||
Leverage Ratio Is Greater Than Or Equal To One Point Zero To One Point Zero But Less Than Two Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Quarterly commitment fee | 0.225% | |||||
Leverage Ratio Is Greater Than Or Equal To One Point Zero To One Point Zero But Less Than Two Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | S O F R Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings basis spread on variable rate | 1.50% | |||||
Leverage Ratio Is Greater Than Or Equal To One Point Zero To One Point Zero But Less Than Two Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | A B R Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.50% | |||||
Leverage Ratio Is Greater Than Or Equal To Two Pont Zero To One Point Zero But Less Than Three Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings basis spread on variable rate | 0.25% | |||||
Leverage Ratio Is Greater Than Or Equal To Two Pont Zero To One Point Zero But Less Than Three Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | S O F R Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings basis spread on variable rate | 1.75% | |||||
Leverage Ratio Is Greater Than Or Equal To Two Pont Zero To One Point Zero But Less Than Three Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | A B R Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 0.75% | |||||
Leverage Ratio Is Greater Than Or Equal To Three Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings basis spread on variable rate | 0.275% | |||||
Leverage Ratio Is Greater Than Or Equal To Three Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | S O F R Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings basis spread on variable rate | 2% | |||||
Leverage Ratio Is Greater Than Or Equal To Three Point Zero To One Point Zero [Member] | July 2022 Revolving Credit Agreement [Member] | A B R Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1% | |||||
Term Loan [Member] | 2022 Revolving Credit Agreement [Member] | BSBY Rate Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis spread on variable rate | 1.125% |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Interest Rate Swap [Member] - USD ($) $ in Millions | 9 Months Ended | |
Aug. 24, 2022 | Sep. 30, 2023 | |
Derivative [Line Items] | ||
Derivative maturity date | Sep. 07, 2025 | |
Derivative rate received | one-month USD LIBOR | |
Derivative rate paid, percent | 2.54% | |
Derivative Instrument, notional value | $ 35.5 | |
Cash receipt from settlement of interest rate swap contract | $ 0.5 |
Corporate Investments and Fun_3
Corporate Investments and Funds Held For Clients - Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Cash and cash equivalents, amortized cost | $ 484,028 | $ 400,730 | ||
Funds held for clients cash and cash equivalents, amortized cost | 1,702,301 | 2,008,365 | ||
Amortized cost | 199,755 | |||
Total investments, amortized cost | 2,386,084 | 2,608,462 | ||
Gross unrealized losses | (2,710) | (4,757) | ||
Cash and cash equivalents, fair value | 484,028 | 400,730 | $ 317,163 | |
Funds held for clients cash and cash equivalents, fair value | 1,702,301 | 2,008,365 | ||
Fair value | 197,045 | |||
Total investments, fair value | 2,383,374 | 2,603,705 | ||
Available-for-sale Securities [Member] | U.S. Treasury Securities [Member] | ||||
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Amortized cost | [1] | 174,755 | 174,367 | |
Gross unrealized losses | [1] | (2,710) | (4,757) | |
Fair value | [1] | 172,045 | 169,610 | |
Available-for-sale Securities [Member] | Certificates of Deposit [Member] | ||||
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Amortized cost | [1] | 25,000 | 25,000 | |
Fair value | [1] | $ 25,000 | $ 25,000 | |
[1] All available-for-sale securities were included within the funds held for clients. |
Corporate Investments and Fun_4
Corporate Investments and Funds Held For Clients - Summary of Unrealized Losses and Fair Values of Available-for-Sale Securities that have been in Unrealized Loss Position for Period of Less than and Greater than 12 Months (Details) - Available-for-sale Securities [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Corporate Investments And Funds Held For Clients [Line Items] | ||
Securities in unrealized loss position for less than twelve months, Gross unrealized losses | $ (4,757) | |
Securities in unrealized loss position for less than twelve months, Fair value | 169,610 | |
Securities in unrealized loss position for greater than twelve months, Gross unrealized losses | $ (2,710) | |
Securities in unrealized loss position for greater than twelve months, Fair value | 172,045 | |
Gross unrealized losses | (2,710) | (4,757) |
Fair value | 172,045 | 169,610 |
U.S. Treasury Securities [Member] | ||
Corporate Investments And Funds Held For Clients [Line Items] | ||
Securities in unrealized loss position for less than twelve months, Gross unrealized losses | (4,757) | |
Securities in unrealized loss position for less than twelve months, Fair value | 169,610 | |
Securities in unrealized loss position for greater than twelve months, Gross unrealized losses | (2,710) | |
Securities in unrealized loss position for greater than twelve months, Fair value | 172,045 | |
Gross unrealized losses | (2,710) | (4,757) |
Fair value | $ 172,045 | $ 169,610 |
Corporate Investments and Fun_5
Corporate Investments and Funds Held For Clients - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities, Available-for-sale, Realized Gain (Loss) | $ 0 | $ 0 |
Credit impairment losses | $ 0 | $ 0 |
Corporate Investments and Fun_6
Corporate Investments and Funds Held For Clients - Summary of Expected Maturities of Available for Sale Securities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract] | |
Amortized cost, One year or less | $ 199,755 |
Amortized cost | 199,755 |
Fair value, One year or less | 197,045 |
Fair value,Total available-for-sale securities | $ 197,045 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Major Categories of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Certificates of Deposit [Member] | ||
Assets: | ||
Assets | $ 25,000 | $ 25,000 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Assets | 172,045 | 169,610 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Assets: | ||
Assets | 25,000 | 25,000 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Assets | $ 172,045 | $ 169,610 |
Employee Savings Plan and Emp_2
Employee Savings Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) minimum age of eligibility for participation | 18 years | |||
401(k) eligibility minimum service period | 90 days | |||
Employee vested percentage in salary deferrals and roll over contributions | 100% | |||
Minimum period for vesting 100% contributions | 2 years | |||
Minimum period for vesting of discretionary contributions | 2 years | |||
Matching contribution | $ 4,000,000 | $ 3,300,000 | $ 11,800,000 | $ 9,900,000 |
Employee stock purchase plan overlapping offering period | 24 months | |||
Employee Stock Purchase Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employees Company's common stock shares purchase limit percentage | 10% | 10% | ||
Employees Company's common stock shares purchase limit amount | $ 25,000 | |||
Purchase price of common stock expressed as a percentage of its fair market value | 85% | |||
Maximum number of shares that may be purchased by a participant | 2,000 | |||
Share of common stock purchase maximum | 2,000,000 | |||
Purchase of shares of common stock | 52,323 | 40,997 | ||
Compensation expense related to ESPP | $ 900,000 | $ 700,000 | $ 2,600,000 | $ 2,100,000 |
After Two Years Of Employment [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Matching contributions, vesting percentage | 100% | |||
One Hundred Percent Match For Percent Of Participants Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution percentage | 100% | |||
Percentage of salary deferrals | 1% | |||
50% Matching Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution percentage | 50% | |||
Minimum [Member] | 50% Matching Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of salary deferrals | 2% | |||
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of salary deferrals | 3.50% | |||
Maximum [Member] | 50% Matching Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of salary deferrals | 6% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net income | $ 75,219 | $ 64,516 | $ 119,296 | $ 52,153 | $ 57,355 | $ 91,930 | $ 259,031 | $ 201,438 |
Denominator: | ||||||||
Basic weighted average shares outstanding | 57,825 | 57,865 | 57,871 | 57,949 | ||||
Diluted weighted average shares outstanding | 57,966 | 58,033 | 58,056 | 58,193 | ||||
Earnings per share: | ||||||||
Earnings per share, basic | $ 1.3 | $ 0.9 | $ 4.48 | $ 3.48 | ||||
Earnings per share, diluted | $ 1.3 | $ 0.9 | $ 4.46 | $ 3.46 | ||||
Restricted Stock Units [Member] | ||||||||
Denominator: | ||||||||
Dilutive effect of unvested restricted stock and restricted stock units | 141 | 168 | 185 | 244 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Oct. 12, 2023 shares | Apr. 03, 2023 shares | May 31, 2023 shares | Feb. 28, 2023 TradingDay Company shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | May 02, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Capitalized compensation cost | $ | $ 11,529 | $ 6,545 | |||||||
Software and Capitalized Software Costs [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Capitalized compensation cost | $ | $ 3,800 | $ 2,400 | $ 11,500 | 6,500 | |||||
Time-Based Shares [Member] | Vice President of Operations [Member] | Severance [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Number of shares vested in period | 1,505 | ||||||||
2023 Long-Term Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Maximum number of shares authorized | 3,600,000 | ||||||||
2023 Long-Term Incentive Plan [Member] | Time-Based Shares [Member] | Non Executive Employees [Member] | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 years | ||||||||
2023 Long-Term Incentive Plan [Member] | Time-Based Shares [Member] | Executive Officers [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Maximum number of shares authorized | 142,000 | 142,000 | |||||||
2023 Long-Term Incentive Plan [Member] | Time-Based Restricted Stock Units [Member] | Executive Officers [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Maximum number of shares authorized | 8,695 | ||||||||
Restricted Stock [Member] | Time-Based Shares [Member] | Non Executive Employees [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 years | ||||||||
Restricted Stock [Member] | Time-Based Shares [Member] | Non Executive Employees [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | ||||||||
Restricted Stock [Member] | 2014 LTIP and 2023 LTIP [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Restricted shares of common stock issued | 575,467 | ||||||||
Restricted Stock [Member] | 2014 LTIP and 2023 LTIP [Member] | Market-Based Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Restricted shares of common stock issued | 87,618 | ||||||||
Restricted Stock [Member] | 2014 LTIP and 2023 LTIP [Member] | VWAP Value Equals or Exceeds $404 Per Share [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Vesting percentage, restricted shares | 50% | ||||||||
VWAP Share Price | $ / shares | $ 404 | ||||||||
Restricted Stock [Member] | 2014 LTIP and 2023 LTIP [Member] | Time-Based Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Restricted shares of common stock issued | 487,849 | ||||||||
Restricted Stock [Member] | 2014 LTIP and 2023 LTIP [Member] | VWAP Value Equals or Exceeds $466 Per Share [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Vesting percentage, restricted shares | 50% | ||||||||
VWAP Share Price | $ / shares | $ 466 | ||||||||
Restricted Stock [Member] | 2023 Long-Term Incentive Plan [Member] | Non Executive Employees [Member] | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Restricted shares of common stock issued | 12,150 | ||||||||
Restricted Stock [Member] | 2023 Long-Term Incentive Plan [Member] | Non Employee Members [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Restricted shares of common stock issued | 5,523 | ||||||||
Performance-Based Restricted Stock Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Restricted shares of common stock issued | 39,100 | ||||||||
Number of units vested | 5,200 | ||||||||
Performance-Based Restricted Stock Units [Member] | LTIP [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Number of publicly traded companies | Company | 34 | ||||||||
Number of trading day | TradingDay | 60 | ||||||||
Performance-Based Restricted Stock Units [Member] | LTIP [Member] | Executive Officers [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Performance period commencement date | Jan. 01, 2021 | ||||||||
Performance period maturity date | Dec. 31, 2022 | ||||||||
Number of units vested | 5,232 | ||||||||
Performance-Based Restricted Stock Units [Member] | 2023 Long-Term Incentive Plan [Member] | Executive Officers [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Maximum number of shares authorized | 39,131 | ||||||||
Restricted Stock Awards and PSU Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||
Allocated Share Based Compensation Expense | $ | $ 33,200 | $ 24,500 | $ 96,400 | $ 70,800 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Unit and PSU Activity (Detail) | 9 Months Ended | |
Sep. 30, 2023 $ / shares shares | ||
Time-Based Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period | shares | 479,100 | |
Restricted Stock Awards and restricted stock units, Granted | shares | 487,800 | |
Restricted Stock Awards and restricted stock units, Vested | shares | (131,500) | |
Restricted Stock Awards and restricted stock units, Forfeited | shares | (61,200) | |
Unvested shares of restricted stock and restricted stock units outstanding at end of period | shares | 774,200 | |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ / shares | $ 315.04 | |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 313.36 | |
Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 293.48 | |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $ / shares | 325.79 | |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ / shares | $ 316.79 | |
Market-Based Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period | shares | 1,677,000 | |
Restricted Stock Awards and restricted stock units, Granted | shares | 87,600 | |
Restricted Stock Awards and restricted stock units, Forfeited | shares | (15,700) | |
Unvested shares of restricted stock and restricted stock units outstanding at end of period | shares | 1,748,900 | |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ / shares | $ 116.36 | |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 316.12 | |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $ / shares | 298.67 | |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ / shares | $ 124.73 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period | shares | 500 | |
Restricted Stock Awards and restricted stock units, Granted | shares | 8,800 | |
Restricted Stock Awards and restricted stock units, Vested | shares | (100) | |
Unvested shares of restricted stock and restricted stock units outstanding at end of period | shares | 9,200 | [1] |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ / shares | $ 377.01 | |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 297.49 | |
Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 377.01 | |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ / shares | $ 300.74 | [1] |
Performance-Based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Unvested shares of restricted stock and restricted stock units outstanding at beginning of period | shares | 77,800 | |
Restricted Stock Awards and restricted stock units, Granted | shares | 39,100 | |
Restricted Stock Awards and restricted stock units, Vested | shares | (5,200) | |
Restricted Stock Awards and restricted stock units, Forfeited | shares | (3,500) | |
Unvested shares of restricted stock and restricted stock units outstanding at end of period | shares | 108,200 | [1] |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ / shares | $ 409.13 | |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 244.39 | |
Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 526.66 | |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $ / shares | 526.66 | |
Unvested shares of restricted stock and restricted stock units outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ / shares | $ 340.08 | [1] |
[1] A maximum of 211,806 shares could be delivered upon settlement of PSUs based upon the Company’s achievement of the applicable performance goals over the applicable performance periods. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Unit and PSU Activity (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2023 shares | |
Performance-Based Restricted Stock Units [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Units that could be delivered upon settlement of PSUs based upon relative TSR over applicable performance periods | 211,806 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Unrecognized Compensation Cost and Related Weighted Average Recognition Period Associated with Unvested restricted Stock Awards and Unvested Restricted Stock Units (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Unrecognized compensation cost | $ 270,993 |
Weighted average period for recognition (years) | 2 years 6 months |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Unrecognized compensation cost | $ 8,803 |
Weighted average period for recognition (years) | 9 months 18 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Examination [Line Items] | ||
Effective income tax rate | 28.10% | 26.90% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - 2023 Long-Term Incentive Plan [Member] - Non Executive Employees [Member] | Oct. 12, 2023 shares |
Time-Based Shares [Member] | |
Subsequent Event [Line Items] | |
Time based RSU vesting period | 3 years |
Restricted Stock [Member] | |
Subsequent Event [Line Items] | |
Restricted shares of common stock issued | 12,150 |