Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | 60,253,999 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 360,594 | $ 277,978 |
Accounts receivable | 17,945 | 9,490 |
Prepaid expenses | 28,588 | 23,729 |
Inventory | 732 | 1,131 |
Income tax receivable | 16,413 | |
Deferred contract costs | 82,074 | 76,724 |
Current assets before funds held for clients | 489,933 | 405,465 |
Funds held for clients | 3,944,363 | 1,846,573 |
Total current assets | 4,434,296 | 2,252,038 |
Property and equipment, net | 362,505 | 348,953 |
Intangible assets, net | 56,999 | 58,028 |
Goodwill | 51,889 | 51,889 |
Long-term deferred contract costs | 493,530 | 461,852 |
Other assets | 45,355 | 42,385 |
Total assets | 5,444,574 | 3,215,145 |
Current liabilities: | ||
Accounts payable | 12,192 | 5,772 |
Income tax payable | 23,180 | |
Accrued commissions and bonuses | 12,048 | 22,357 |
Accrued payroll and vacation | 42,838 | 34,259 |
Deferred revenue | 17,135 | 16,277 |
Current portion of long-term debt | 1,775 | 1,775 |
Accrued expenses and other current liabilities | 57,260 | 63,397 |
Current liabilities before client funds obligation | 166,428 | 143,837 |
Client funds obligation | 3,946,103 | 1,846,573 |
Total current liabilities | 4,112,531 | 1,990,410 |
Deferred income tax liabilities, net | 134,769 | 145,504 |
Long-term deferred revenue | 87,681 | 85,149 |
Net long-term debt, less current portion | 26,945 | 27,380 |
Other long-term liabilities | 73,628 | 72,988 |
Total long-term liabilities | 323,023 | 331,021 |
Total liabilities | 4,435,554 | 2,321,431 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value (100,000 shares authorized, 62,302 and 62,298 shares issued at March 31, 2022 and December 31, 2021, respectively; 58,015 and 58,012 shares outstanding at March 31, 2022 and December 31, 2021, respectively) | 623 | 623 |
Additional paid-in capital | 490,307 | 465,594 |
Retained earnings | 1,007,509 | 915,579 |
Accumulated other comprehensive earnings (loss) | (1,119) | |
Treasury stock, at cost (4,287 and 4,286 shares at March 31, 2022 and December 31, 2021, respectively) | (488,300) | (488,082) |
Total stockholders’ equity | 1,009,020 | 893,714 |
Total liabilities and stockholders’ equity | $ 5,444,574 | $ 3,215,145 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 62,302,000 | 62,298,000 |
Common stock, shares outstanding | 58,015,000 | 58,012,000 |
Treasury stock, shares | 4,287,000 | 4,286,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Total revenues | $ 353,519 | $ 272,198 |
Cost of revenues | ||
Operating expenses | 38,492 | 29,073 |
Depreciation and amortization | 9,992 | 7,200 |
Total cost of revenues | 48,484 | 36,273 |
Administrative expenses | ||
Sales and marketing | 74,996 | 62,761 |
Research and development | 31,605 | 24,711 |
General and administrative | 60,504 | 46,191 |
Depreciation and amortization | 11,663 | 7,716 |
Total administrative expenses | 178,768 | 141,379 |
Total operating expenses | 227,252 | 177,652 |
Operating income | 126,267 | 94,546 |
Interest expense | (215) | |
Other income (expense), net | 1,412 | 629 |
Income before income taxes | 127,464 | 95,175 |
Provision for income taxes | 35,534 | 30,559 |
Net income | $ 91,930 | $ 64,616 |
Earnings per share, basic | $ 1.58 | $ 1.12 |
Earnings per share, diluted | $ 1.58 | $ 1.11 |
Weighted average shares outstanding: | ||
Basic | 58,014 | 57,740 |
Diluted | 58,219 | 58,394 |
Comprehensive earnings (loss): | ||
Net income | $ 91,930 | $ 64,616 |
Unrealized net gains (losses) on available-for-sale securities | (1,522) | |
Tax effect | 403 | |
Other comprehensive income (loss), net of tax | (1,119) | |
Comprehensive earnings (loss) | 90,811 | 64,616 |
Recurring [Member] | ||
Revenues | ||
Total revenues | 348,164 | 267,774 |
Implementation and Other [Member] | ||
Revenues | ||
Total revenues | $ 5,355 | $ 4,424 |
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, 2020 | $ 655,643 | $ 618 | $ 357,908 | $ 719,619 | $ (422,502) | |
Beginning balance, shares at Dec. 31, 2020 | 61,861 | 4,122 | ||||
Vesting of restricted stock, shares | 3 | |||||
Stock-based compensation | 25,594 | 25,594 | ||||
Repurchases of common stock, shares | 1 | |||||
Repurchases of common stock | (377) | $ (377) | ||||
Net income | 64,616 | 64,616 | ||||
Ending balance, value at Mar. 31, 2021 | 745,476 | $ 618 | 383,502 | 784,235 | $ (422,879) | |
Ending balance, shares at Mar. 31, 2021 | 61,864 | 4,123 | ||||
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, shares | 1 | |||||
Repurchases of common stock | (218) | $ (218) | ||||
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 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 91,930 | $ 64,616 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,655 | 14,916 |
Accretion of discount on available-for-sale securities | (303) | (77) |
Non-cash marketing expense | 437 | |
Loss on disposition of property and equipment | 132 | |
Amortization of debt issuance costs | 9 | 9 |
Stock-based compensation expense | 22,055 | 23,581 |
Cash paid for derivative settlement | (174) | (232) |
(Gain)/loss on derivative | (1,089) | (424) |
Deferred income taxes, net | (10,332) | 2,738 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,455) | (10,662) |
Prepaid expenses | (4,859) | (6,255) |
Inventory | 124 | (125) |
Other assets | (2,970) | 559 |
Deferred contract costs | (36,261) | (26,575) |
Accounts payable | 5,406 | 803 |
Income taxes, net | 39,593 | 23,424 |
Accrued commissions and bonuses | (10,309) | (6,922) |
Accrued payroll and vacation | 8,579 | 8,105 |
Deferred revenue | 3,390 | 2,167 |
Accrued expenses and other current liabilities | (1,195) | (321) |
Net cash provided by operating activities | 117,231 | 89,457 |
Cash flows from investing activities | ||
Purchases of investments from funds held for clients | (169,152) | (47,215) |
Proceeds from investments from funds held for clients | 136,000 | 80,000 |
Purchases of property and equipment | (34,474) | (25,330) |
Net cash provided by (used in) investing activities | (67,626) | 7,455 |
Cash flows from financing activities | ||
Withholding taxes paid related to net share settlements | (218) | (377) |
Payments on long-term debt | (444) | (444) |
Net change in client funds obligation | 2,099,530 | 686,190 |
Net cash provided by (used in) financing activities | 2,098,868 | 685,369 |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 2,148,473 | 782,281 |
Cash, cash equivalents, restricted cash and restricted cash equivalents | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 1,812,691 | 1,585,275 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | 3,961,164 | 2,367,556 |
Cash and cash equivalents | 360,594 | 215,093 |
Restricted cash included in funds held for clients | 3,600,570 | 2,152,463 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment, accrued but not paid | 5,394 | 6,217 |
Stock-based compensation for capitalized software | 1,891 | 1,456 |
Right of use assets obtained in exchange for operating lease liabilities | $ 4,146 | $ 541 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
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 | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 (the “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022. 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 months ended March 31, 2022 are not necessarily indicative of the results expected for the full year. Recently Adopted Accounting Pronouncements In January 2021, we adopted Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) utilizing the prospective transition method. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income tax in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of this guidance did not have a 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 ACA form filing requirements, such as Form W-2, Form 1099, and Form 1095 and revenues from processing unscheduled payroll runs (such as ) 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 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 offsetting 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 March 31, 2022 and December 31, 2021, the funds held for clients were invested in money market funds, demand deposit accounts, commercial paper and certificates of deposit. Additionally, as of March 31, 2022, the funds held for clients were invested in U.S. treasury securities with an original maturity duration of greater than one year. Short-term investments in commercial paper and certificates of deposit with an original maturity duration greater than three months are classified as available-for-sale securities, and are also included within the funds held for clients line item in the consolidated balance sheets. U.S. treasury securities with an original maturity duration of greater than one year are also classified as available-for-sale securities and 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 May 2021, our Board of Directors authorized the repurchase of up to $300.0 million of our common stock. As of March 31, 2022, there was $266.1 million 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 May 13, 2023. During the three months ended March 31, 2022, we repurchased an aggregate of 594 shares of our common stock at an average cost of $366.49 per share, all of which were shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of restricted stock. Recently Issued 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. As of March 31, 2022, our interest-bearing notes bore interest, at our option, at either (a) a prime rate plus 1.0% or (b) fluctuating interest rates based on a one-month USD LIBOR rate. When the one-month USD LIBOR rate ceased to exist, we would have had to renegotiate our loan documents. ASU 2020-04 is currently effective and we plan to adopt and apply ASU 2020-04 prospectively to contract modifications made on or before December 31, 2022. As of March 31, 2022, there were no contract modifications that would have been impacted by ASU 2020-04. 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. ASU 2021-01 is currently effective and upon adoption may be applied to contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. As of March 31, 2022, there were no contract modifications that would have been impacted by ASU 2021-01 . |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
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 and HR management 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, 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, Enhanced ACA and Clue™ applications. The performance obligations related to recurring revenues are 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 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. 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 employee time and attendance services. 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. 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 right performance obligations as of March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 Balance, beginning of period $ 101,426 $ 86,826 Deferral of revenue 9,188 6,962 Recognition of unearned revenue (5,798 ) (4,795 ) Balance, end of period $ 104,816 $ 88,993 We expect to recognize $12.9 million of deferred revenue related to material right performance obligations in the remainder of 2022, $16.3 million of such deferred revenue in 2023, and $75.6 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 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 March 31, 2022 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 272,919 $ 28,286 $ (10,682 ) $ 290,523 Costs to fulfill a contract $ 265,657 $ 28,630 $ (9,206 ) $ 285,081 As of and for the Three Months Ended March 31, 2021 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 232,583 $ 20,541 $ (8,785 ) $ 244,339 Costs to fulfill a contract $ 199,593 $ 22,178 $ (6,802 ) $ 214,969 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. PROPERTY AND EQUIPMENT Property and equipment and accumulated depreciation and amortization were as follows: March 31, 2022 December 31, 2021 Property and equipment Software and capitalized software costs $ 217,501 $ 199,470 Buildings 175,878 172,807 Computer equipment 109,838 102,509 Rental clocks 31,833 30,313 Furniture, fixtures and equipment 26,851 24,971 Other 16,519 16,397 578,420 546,467 Less: accumulated depreciation and amortization (263,278 ) (242,652 ) 315,142 303,815 Construction in progress 13,567 11,342 Land 33,796 33,796 Property and equipment, net $ 362,505 $ 348,953 We capitalize computer software development costs related to software developed for internal use in accordance with ASC 350-40. For the three months ended March 31, 2022 and 2021, we capitalized $15.4 million and $12.3 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 months ended March 31, 2022 and 2021, we incurred interest costs of $0.3 million and $0.4 million, respectively, of which we capitalized $0.1 million and $0.4 million, respectively. Included in the construction in progress balance at March 31, 2022 and December 31, 2021 is $0.4 million and $0.1 million in retainage, respectively. Depreciation and amortization expense for property and equipment was $20.6 million and $14.9 million, for the three months ended March 31, 2022 and 2021, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 5. GOODWILL AND INTANGIBLE ASSETS, NET As of both March 31, 2022 and December 31, 2021, goodwill was $51.9 million. We have selected June 30 as our annual goodwill impairment testing date. We performed a qualitative analysis of the fair value of our goodwill and determined there was no impairment as of June 30, 2021. As of March 31, 2022 and December 31, 2021, there were no indicators of impairment. In connection with our marketing initiatives, we have 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 have 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 table presents the components of intangible assets within our consolidated balance sheets: March 31, 2022 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 14.6 $ 60,199 $ (3,254 ) $ 56,945 Trade name 0.3 3,194 (3,140 ) 54 Total $ 63,393 $ (6,394 ) $ 56,999 December 31, 2021 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 14.8 $ 60,199 $ (2,278 ) $ 57,921 Trade name 0.5 3,194 (3,087 ) 107 Total $ 63,393 $ (5,365 ) $ 58,028 Amortization of intangible assets for the three months ended March 31, 2022 and 2021 was $1.0 million and $0.1 million, respectively. We estimate the aggregate amortization expense will be $3.0 million for the remainder of 2022 and $3.9 million for each of 2023, 2024, 2025, 2026 and 2027, respectively. |
Long-Term Debt, Net
Long-Term Debt, Net | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | 6. LONG-TERM DEBT, NET Long-term debt consisted of the following: March 31, 2022 December 31, 2021 Net term note to bank due September 7, 2025 $ 28,720 $ 29,155 Total long-term debt, net (including current portion) 28,720 29,155 Less: Current portion (1,775 ) (1,775 ) Total long-term debt, net $ 26,945 $ 27,380 On December 7, 2017, we entered into a senior secured term credit agreement (as amended from time to time, the “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 “Term Loans”). Our obligations under the Term Loans were secured by a mortgage and first priority security interest in our corporate headquarters property. The 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 Term Loan plus 1.5%. As of March 31, 2022, our long-term indebtedness consisted solely of the Term Loans made under the Term Credit Agreement. Unamortized debt issuance costs of $0.1 million as of both March 31, 2022 and December 31, 2021, are presented as a direct deduction from the carrying amount of the debt liability. Under the Term Credit Agreement, we were subject to two material financial covenants, which required us to maintain a fixed charge coverage ratio of not less than 1.25 to 1.0 and a funded indebtedness to EBITDA ratio of not greater than 2.0 to 1.0. As of March 31, 2022, we were in compliance with these covenants. As discussed below, the Term Loans were repaid in full on May 4, 2022 and the Term Credit Agreement was terminated. On February 12, 2018, we entered into a senior secured revolving credit agreement (the “2018 Revolving Credit Agreement”) with JPMorgan Chase Bank, N.A. and Bank of America, N.A. that provided for a senior secured revolving credit facility (the “2018 Facility”) in the aggregate principal amount of $50.0 million (the “2018 Revolving Commitment”), which could have been increased to up to $100.0 million, subject to obtaining additional lender commitments and certain approvals and satisfying certain other conditions. The 2018 Facility include d a $ 5.0 million sublimit for swingline loans and a $ 2.5 million s ublimit for letters of credit. The 2018 Facility was scheduled to mature on February 12, 2020 . On April 15, 2019, we entered into the First Amendment to Revolving Credit Agreement , p ursuant to which (i) Wells Fargo Bank, N.A., was added as a lender , (ii) the 2018 Revolving Commitment was increased to $ 75.0 million, which could have been further increased to $ 125.0 million subject to obtaining additional lender commitments and certain approvals and satisfying other conditions , and ( i ii) t he scheduled maturity date of the 2018 Facility was extended to April 15, 2022 . Borrowings under the 2018 Facility would generally have borne interest at a prime rate plus 1.0% or, at our option, an adjusted LIBOR rate for the interest period in effect for such borrowing plus 1.5%. The proceeds of the loans and letters of credit under the 2018 Facility would have to have been used only for our general business purposes and working capital. Letters of credit were to be issued only to support our business operations. As of March 31, 2022, we did not have any borrowings outstanding under the 2018 Facility. Under the 2018 Revolving Credit Agreement, we were required to maintain a fixed charge coverage ratio of not less than 1.25 to 1.0 and a funded indebtedness to EBITDA ratio of not greater than 2.0 to 1.0. Additionally, the 2018 Revolving Credit Agreement contained customary affirmative and negative covenants, including covenants limiting our ability to, among other things, grant liens, incur debt, effect certain mergers, make certain 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 for a facility of the size and type of the 2018 Facility. As of March 31, 2022, we were in compliance with all covenants related to the 2018 Revolving Credit Agreement. Pursuant to its terms, the 2018 Facility matured on April 15, 2022. On May 4, 2022, we entered into the 2022 Revolving Credit Agreement (as defined in Note 15) and borrowed $29.0 million under the 2022 Facility (as defined in Note 15) to repay the Term Loans along with accrued interest, expenses and fees. In connection with the repayment of the Term Loans, the Term Credit Agreement was terminated on May 4, 2022. See Note 15 for additional information regarding the 2022 Revolving Credit Agreement and 2022 Facility. As of March 31, 2022 and December 31, 2021, 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 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 are 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 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 receive quarterly variable interest payments based on the LIBOR rate and pay interest at a fixed rate. As further discussed in Note 6, on May 4, 2022, we repaid the Term Loans and terminated the Term Credit Agreement. In connection with the repayment of the Term Loans, we borrowed funds under the 2022 Facility, as discussed in Note 15. The interest rate swap remains outstanding to offset the interest rate variability associated with the outstanding borrowings under the 2022 Facility. The interest rate swap agreement has a maturity date of September 7, 2025. For the three months ended March 31, 2022 and 2021, we recorded gains of $1.3 million and $0.7 million, respectively, for the change in fair value of the interest rate swap. The change in the fair value of the interest rate swap 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 | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses (1) Fair value Cash and cash equivalents $ 360,594 $ — $ — $ 360,594 Funds held for clients ’ 3,600,570 — — 3,600,570 Available-for-sale securities (2) Commercial paper 245,848 — (725 ) 245,123 Certificates of deposit 25,000 — — 25,000 U.S. treasury securities 74,467 — (797 ) 73,670 Total investments $ 4,306,479 $ — $ (1,522 ) $ 4,304,957 December 31, 2021 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 277,978 $ — $ — $ 277,978 Funds held for clients ’ 1,534,894 — — 1,534,894 Available-for-sale securities (2) Commercial paper 311,679 — — 311,679 Certificates of deposit — — — — Total investments $ 2,124,551 $ — $ — $ 2,124,551 (1) These securities have been in an unrealized loss position for a period of less than 12 months. (2) All available-for-sale securities were included within funds held for clients. 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 three months ended March 31, 2022 or 2021. There were no realized gains or losses on the sale of available-for-sale securities for the three months ended March 31, 2022 or 2021. We regularly review the composition of our investment portfolio and did not recognize any credit impairment losses during the three months ended March 31, 2022 or during the three months ended March 31, 2021. All of our commercial paper securities held an A-2 rating or better as of March 31, 2022 and the U.S. treasury securities held a rating of AAA as of March 31, 2022. Expected maturities of available-for-sale securities at March 31, 2022 are as follows: Expected maturity Amortized cost Fair value One year or less $ 270,848 $ 270,123 One year to five years $ 74,467 $ 73,670 Total available-for-sale securities $ 345,315 $ 343,793 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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 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. As discussed in Note 2, we invest funds held for clients in money market funds, demand deposit accounts, commercial paper with a maturity duration less than three months and certificates of deposit, 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 commercial paper and certificates of deposit with an original maturity duration 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. The interest rate swap is measured on a recurring basis based on quoted prices for similar financial instruments and other observable inputs recognized at fair value. 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 March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Commercial paper $ — $ 245,123 $ — $ 245,123 Certificates of deposit $ — $ 25,000 $ — $ 25,000 U.S. treasury securities $ — $ 73,670 $ — $ 73,670 Liabilities: Interest rate swap $ — $ 72 $ — $ 72 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Commercial paper $ — $ 311,679 $ — $ 311,679 Certificates of deposit $ — $ — $ — $ — Liabilities: Interest rate swap $ — $ 1,335 $ — $ 1,335 |
Employee Savings Plan and Emplo
Employee Savings Plan and Employee Stock Purchase Plan | 3 Months Ended |
Mar. 31, 2022 | |
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 $3.5 million and $3.3 million for the three months ended March 31, 2022 and 2021, 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 19,133 and 15,762 shares of the Company’s common stock under the ESPP during the three months ended March 31, 2022 and 2021, 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 $0.6 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 1 . EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of shares of common stock outstanding for 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 shares of restricted stock whether or not they are vested. In accordance with ASC Topic 260, “Earnings Per Share,” the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings. Certain unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. For the time periods in the table below, we did not have any participating securities. 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 March 31, 2022 2021 Numerator: Net income $ 91,930 $ 64,616 Denominator: Basic weighted average shares outstanding 58,014 57,740 Dilutive effect of unvested restricted stock 205 654 Diluted weighted average shares outstanding 58,219 58,394 Earnings per share: Basic $ 1.58 $ 1.12 Diluted $ 1.58 $ 1.11 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. STOCK-BASED COMPENSATION Restricted Stock Awards During the three months ended March 31, 2022, we issued an aggregate of 209,203 restricted shares of common stock to certain non-executive employees under the Paycom Software, Inc. 2014 Long-Term Incentive Plan (as amended, the “LTIP”), consisting of 59,503 shares subject to market-based vesting conditions (“Market-Based Shares”) and 149,700 shares subject to time-based 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 $484 per share and 50% on the first date, if any, that the Company’s VWAP Value equals or exceeds $559 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 LTIP and the applicable restricted stock award agreement. The majority of the Time-Based Shares will vest 21% on a specified initial vesting date, 21% on the first anniversary of such initial vesting date, 25% on the second anniversary of such initial vesting date, and 33% on the on the third anniversary of such initial vesting date, 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 LTIP and the applicable restricted stock award agreement. The following table summarizes restricted stock awards activity for the three months ended March 31, 2022: Time-Based Market-Based Restricted Stock Awards Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Unvested shares of restricted stock outstanding at December 31, 2021 369.6 $ 259.94 1,628.3 $ 111.87 Granted 149.7 $ 321.21 59.5 $ 268.93 Vested (3.9 ) $ 114.94 — $ 278.24 Forfeited (11.2 ) $ 319.01 (2.1 ) $ 281.75 Unvested shares of restricted stock outstanding at March 31, 2022 504.2 $ 277.92 1,685.7 $ 117.20 Performance-Based Restricted Stock Units In February 2022, the Compensation Committee of the Board of Directors authorized the granting of performance-based restricted stock units (“PSUs”) to certain executive officers pursuant to the LTIP (the “2022 PSU Awards”). Each PSU granted under the LTIP represents a notional share of the Company’s common stock. The 2022 PSU Awards represented an aggregate of 51,494 target units that may increase to an aggregate of 128,735 awarded units based upon the Company’s performance over two separate performance periods: (i) a two-year performance period commencing on January 1, 2022 and ending on December 31, 2023 (the “Two-Year Performance Period”); and (ii) a three-year performance period commencing on January 1, 2022 and ending on December 31, 2024 (the “Three-Year Performance Period”). Up to 25% of the PSUs will be eligible to vest no later than February 29, 2024, for the Two-Year Performance Period, and up to 75% of the PSUs will be eligible to vest no later than March 1, 2025, for the Three-Year Performance Period, provided that the grantee remains employed by or providing services to the Company on the applicable vesting date, and subject to the terms and conditions of the LTIP and the Restricted Stock Unit Award Agreement – Performance Based Vesting (the “PSU Award Agreement”). The number of PSUs that will vest and be converted into shares of common stock will depend on the Company’s relative total stockholder return (“Relative TSR”), expressed as a percentile ranking of the Company’s total stockholder return (“TSR”) as compared to the Company’s peer group set forth in the PSU Award Agreement. For purposes of the 2022 PSU Awards, TSR is determined by dividing (i) the sum of (A) the average daily volume weighted average price (or “VWAP” as defined in the PSU Award Agreement) 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 (B) 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, 2021, plus (C) 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, 2021. The Company’s peer group includes 35 publicly traded companies, which were reflective of the S&P 500 Software & Services index on the grant date . The following table summarizes PSU activity for the three months ended March 31, 2022: PSUs Units Weighted Average Grant Date Fair Value Per Unit Unvested PSUs outstanding at December 31, 2021 37.1 $ 556.50 Granted 51.5 $ 296.07 Forfeited — $ — Unvested PSUs outstanding at March 31, 2022 (1) 88.6 $ 405.17 (1) A maximum of 221,549 units could be awarded based upon Paycom’s Relative TSR over the applicable performance periods. For the three months ended March 31, 2022 and 2021, our total compensation expense related to restricted stock awards and PSU awards, in the aggregate, was $22.1 million and $23.6 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 PSU awards as of March 31, 2022. Restricted Stock Awards PSUs Unrecognized compensation cost $ 242,128 $ 26,009 Weighted average period for recognition (years) 3.5 2.1 We capitalized stock-based compensation costs related to software developed for internal use of $1.9 million and $1.5 million for the three months ended March 31, 2022 and 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 3 . 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 | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 4 . INCOME TAXES The Company’s effective income tax rate was 27.9% and 32.1% for the three months ended March 31, 2022 and 2021, respectively. The lower effective income tax rate for the three months ended March 31, 2022 is primarily related to a decrease in nondeductible expenses. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 5 . SUBSEQUENT EVENTS Officer Transition On April 14, 2022, the Company announced the departure of Jon Evans from the position of Chief Operating Officer of the Company, effective April 14, 2022. Justin Long, the Company’s Executive Vice President of Operations, will assume Mr. Evans’s responsibilities. In connection with Mr. Evans’s departure, 5,663 of the Time-Based Shares previously granted to Mr. Evans accelerated in vesting. The PSUs granted to Mr. Evans in 2021 and 2022 will remain eligible for vesting based on the Company’s actual performance, but pro-rated for the number of days Mr. Evans was employed during the applicable two-year performance periods and three-year performance periods. Debt Agreements As discussed in Note 6, on April 15, 2022, the 2018 Revolving Credit Agreement matured pursuant to its terms. On May 4, 2022 (the “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 new credit agreement (the “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 (collectively with Bank of America, N.A., the “Lenders”), and Bank of America, N.A., as the administrative agent. The 2022 Revolving Credit Agreement provides for a senior secured revolving credit facility (the “2022 Facility”) in the 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 2022 Facility includes a $25.0 million sublimit for swingline loans and a $2.5 million sublimit for letters of credit. The 2022 Facility is scheduled to mature on May 4, 2027 (the “Scheduled Maturity Date”). We have the option to borrow under the 2022 Facility in the form of either base rate loans or Bloomberg Short-Term Bank Yield Index (“BSBY”) rate loans. Each BSBY rate loan bears interest at a rate per annum equal to the BSBY rate plus (i) 1.125% if the Company’s consolidated leverage ratio is less than 1.0 to 1.0 or (ii) 1.375% if the Company’s consolidated leverage ratio is greater than or equal to 1.0 to 1.0. Each base rate loan bears interest at a rate per annum equal to (x) a fluctuating rate of interest per annum equal to the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the BSBY rate plus 1.0%, subject to the interest rate floors set forth therein, plus (y) 0.125% if the Company’s consolidated leverage ratio is less than 1.0 to 1.0, or (ii) 0.375% if the Company’s consolidated leverage ratio is greater than or equal to 1.0 to 1.0. We are required to pay a quarterly commitment fee at a rate of 0.20% per annum on the daily amount of the undrawn portion of the revolving commitments under the 2022 Facility. We are also required to pay customary letter of credit fees upon drawing any letter of credit. The 2022 Facility provides for no scheduled principal amortization prior to the Scheduled Maturity Date. Subject to certain conditions set forth in the 2022 Revolving Credit Agreement, we may borrow, prepay and reborrow under the 2022 Facility and terminate or reduce the Lenders’ commitments at any time prior to the Scheduled Maturity Date. The proceeds of the loans and letters of credit under the 2022 Facility are to be used for ongoing working capital and general corporate purposes and refinancing the Term Loans. On the Closing Date, we borrowed $29.0 million under the 2022 Facility to repay the Term Loans, along with accrued interest, expenses and fees. The loan on the Closing Date bears interest at the BSBY rate plus 1.125%. In connection with the repayment of the Term Loans, the Term Credit Agreement was terminated on May 4, 2022. Under the 2022 Revolving Credit Agreement, we are required to maintain as of the end of each fiscal quarter a consolidated fixed charge coverage ratio of not less than 1.25 to 1.0 and a consolidated leverage ratio of not greater than 2.25 to 1.0. Additionally, the 2022 Revolving 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 for a facility of the size and type of the 2022 Facility. Our obligations under the 2022 Facility are secured by a senior security interest in all personal property of the Loan Parties. The events of default under the 2022 Revolving 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 and change in control events. The occurrence of an event of default could result in the acceleration of our obligations under the 2022 Revolving Credit Agreement, the requirement to post cash collateral with respect to letters of credit, the termination of the Lenders’ commitments and a 2.0% increase in the rate of interest. From time to time, the Lenders and certain of their affiliates have engaged in, and may in the future engage in, investment banking and other commercial dealings in the ordinary course of business with the Company or the Company’s affiliates. They have received, or may in the future receive, customary fees and commissions for these transactions. Restricted Stock Awards On April 22, 2022, we issued an aggregate of 45,303 restricted shares of common stock to certain non-executive employees under the LTIP consisting of Time-Based Shares that will vest in three or four equal tranches annually, beginning on the first anniversary of such initial vesting date, 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 LTIP and the applicable restricted stock award agreement. On May 2, 2022, we issued an aggregate of 4,608 restricted shares of common stock under the LTIP to the non-employee members of our board of directors. 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 LTIP and the applicable restricted stock award agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 are not necessarily indicative of the results expected for the full year. |
Recently Adopted / Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2021, we adopted Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) utilizing the prospective transition method. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income tax in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of this guidance did not have a material impact on our unaudited interim consolidated financial statements. Recently Issued 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. As of March 31, 2022, our interest-bearing notes bore interest, at our option, at either (a) a prime rate plus 1.0% or (b) fluctuating interest rates based on a one-month USD LIBOR rate. When the one-month USD LIBOR rate ceased to exist, we would have had to renegotiate our loan documents. ASU 2020-04 is currently effective and we plan to adopt and apply ASU 2020-04 prospectively to contract modifications made on or before December 31, 2022. As of March 31, 2022, there were no contract modifications that would have been impacted by ASU 2020-04. 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. ASU 2021-01 is currently effective and upon adoption may be applied to contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. As of March 31, 2022, there were no contract modifications that would have been impacted by ASU 2021-01 . |
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 ACA form filing requirements, such as Form W-2, Form 1099, and Form 1095 and revenues from processing unscheduled payroll runs (such as ) 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 |
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 offsetting 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 March 31, 2022 and December 31, 2021, the funds held for clients were invested in money market funds, demand deposit accounts, commercial paper and certificates of deposit. Additionally, as of March 31, 2022, the funds held for clients were invested in U.S. treasury securities with an original maturity duration of greater than one year. Short-term investments in commercial paper and certificates of deposit with an original maturity duration greater than three months are classified as available-for-sale securities, and are also included within the funds held for clients line item in the consolidated balance sheets. U.S. treasury securities with an original maturity duration of greater than one year are also classified as available-for-sale securities and 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 May 2021, our Board of Directors authorized the repurchase of up to $300.0 million of our common stock. As of March 31, 2022, there was $266.1 million 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 May 13, 2023. During the three months ended March 31, 2022, we repurchased an aggregate of 594 shares of our common stock at an average cost of $366.49 per share, all of which were shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of restricted stock. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Changes in Deferred Revenue Related to Material Right Performance Obligations | Changes in deferred revenue related to material right performance obligations as of March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 Balance, beginning of period $ 101,426 $ 86,826 Deferral of revenue 9,188 6,962 Recognition of unearned revenue (5,798 ) (4,795 ) Balance, end of period $ 104,816 $ 88,993 |
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 March 31, 2022 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 272,919 $ 28,286 $ (10,682 ) $ 290,523 Costs to fulfill a contract $ 265,657 $ 28,630 $ (9,206 ) $ 285,081 As of and for the Three Months Ended March 31, 2021 Beginning Capitalization Ending Balance of Costs Amortization Balance Costs to obtain a contract $ 232,583 $ 20,541 $ (8,785 ) $ 244,339 Costs to fulfill a contract $ 199,593 $ 22,178 $ (6,802 ) $ 214,969 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 Property and equipment Software and capitalized software costs $ 217,501 $ 199,470 Buildings 175,878 172,807 Computer equipment 109,838 102,509 Rental clocks 31,833 30,313 Furniture, fixtures and equipment 26,851 24,971 Other 16,519 16,397 578,420 546,467 Less: accumulated depreciation and amortization (263,278 ) (242,652 ) 315,142 303,815 Construction in progress 13,567 11,342 Land 33,796 33,796 Property and equipment, net $ 362,505 $ 348,953 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 table presents the components of intangible assets within our consolidated balance sheets: March 31, 2022 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 14.6 $ 60,199 $ (3,254 ) $ 56,945 Trade name 0.3 3,194 (3,140 ) 54 Total $ 63,393 $ (6,394 ) $ 56,999 December 31, 2021 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Naming rights 14.8 $ 60,199 $ (2,278 ) $ 57,921 Trade name 0.5 3,194 (3,087 ) 107 Total $ 63,393 $ (5,365 ) $ 58,028 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: March 31, 2022 December 31, 2021 Net term note to bank due September 7, 2025 $ 28,720 $ 29,155 Total long-term debt, net (including current portion) 28,720 29,155 Less: Current portion (1,775 ) (1,775 ) Total long-term debt, net $ 26,945 $ 27,380 |
Corporate Investments and Fun_2
Corporate Investments and Funds Held For Clients (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses (1) Fair value Cash and cash equivalents $ 360,594 $ — $ — $ 360,594 Funds held for clients ’ 3,600,570 — — 3,600,570 Available-for-sale securities (2) Commercial paper 245,848 — (725 ) 245,123 Certificates of deposit 25,000 — — 25,000 U.S. treasury securities 74,467 — (797 ) 73,670 Total investments $ 4,306,479 $ — $ (1,522 ) $ 4,304,957 December 31, 2021 Type of issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 277,978 $ — $ — $ 277,978 Funds held for clients ’ 1,534,894 — — 1,534,894 Available-for-sale securities (2) Commercial paper 311,679 — — 311,679 Certificates of deposit — — — — Total investments $ 2,124,551 $ — $ — $ 2,124,551 (1) These securities have been in an unrealized loss position for a period of less than 12 months. (2) All available-for-sale securities were included within funds held for clients. |
Summary of Expected Maturities of Available for Sale Securities | Expected maturities of available-for-sale securities at March 31, 2022 are as follows: Expected maturity Amortized cost Fair value One year or less $ 270,848 $ 270,123 One year to five years $ 74,467 $ 73,670 Total available-for-sale securities $ 345,315 $ 343,793 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Commercial paper $ — $ 245,123 $ — $ 245,123 Certificates of deposit $ — $ 25,000 $ — $ 25,000 U.S. treasury securities $ — $ 73,670 $ — $ 73,670 Liabilities: Interest rate swap $ — $ 72 $ — $ 72 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Commercial paper $ — $ 311,679 $ — $ 311,679 Certificates of deposit $ — $ — $ — $ — Liabilities: Interest rate swap $ — $ 1,335 $ — $ 1,335 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Numerator: Net income $ 91,930 $ 64,616 Denominator: Basic weighted average shares outstanding 58,014 57,740 Dilutive effect of unvested restricted stock 205 654 Diluted weighted average shares outstanding 58,219 58,394 Earnings per share: Basic $ 1.58 $ 1.12 Diluted $ 1.58 $ 1.11 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Nonvested Restricted Stock Awards and PSU Activity | The following table summarizes restricted stock awards activity for the three months ended March 31, 2022: Time-Based Market-Based Restricted Stock Awards Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Unvested shares of restricted stock outstanding at December 31, 2021 369.6 $ 259.94 1,628.3 $ 111.87 Granted 149.7 $ 321.21 59.5 $ 268.93 Vested (3.9 ) $ 114.94 — $ 278.24 Forfeited (11.2 ) $ 319.01 (2.1 ) $ 281.75 Unvested shares of restricted stock outstanding at March 31, 2022 504.2 $ 277.92 1,685.7 $ 117.20 |
Summary of Unrecognized Compensation Cost and Related Weighted Average Recognition Period Associated with Unvested restricted Stock Awards and Unvested PSU Awards | The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested restricted stock awards and unvested PSU awards as of March 31, 2022. Restricted Stock Awards PSUs Unrecognized compensation cost $ 242,128 $ 26,009 Weighted average period for recognition (years) 3.5 2.1 |
Performance-Based Restricted Stock Units [Member] | |
Summary of Nonvested Restricted Stock Awards and PSU Activity | The following table summarizes PSU activity for the three months ended March 31, 2022: PSUs Units Weighted Average Grant Date Fair Value Per Unit Unvested PSUs outstanding at December 31, 2021 37.1 $ 556.50 Granted 51.5 $ 296.07 Forfeited — $ — Unvested PSUs outstanding at March 31, 2022 (1) 88.6 $ 405.17 (1) A maximum of 221,549 units could be awarded based upon Paycom’s Relative TSR over the applicable performance periods. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | May 31, 2021 | |
Summary Of Significant Accounting Policy [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
Debt instrument, description of variable rate basis | one-month USD LIBOR rate. | |
Stock Repurchase Plan [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Available authorized repurchase amount | $ 266,100,000 | |
Stock repurchase plan expiration date | May 13, 2023 | |
Stock repurchased, average costs per share | $ 366.49 | |
Shares withheld to satisfy tax withholding obligations | 594 | |
Maximum [Member] | Stock Repurchase Plan [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Stock repurchase plan, authorized amount | $ 300,000,000 | |
Accounting Standards Update 2019-12 [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Accounting standards update, adoption date | Jan. 1, 2021 | |
Accounting standards update, adopted | true | |
Accounting standards update, immaterial effect | true |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Deferred Revenue Related to Material Right Performance Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | ||
Balance, beginning of period | $ 101,426 | $ 86,826 |
Deferral of revenue | 9,188 | 6,962 |
Recognition of unearned revenue | (5,798) | (4,795) |
Balance, end of period | $ 104,816 | $ 88,993 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Deferred revenue expect to recognize description | We expect to recognize $12.9 million of deferred revenue related to material right performance obligations in the remainder of 2022, $16.3 million of such deferred revenue in 2023, and $75.6 million of such deferred revenue thereafter. |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail 1) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenue expect to recognize amount | $ 12.9 |
Deferred revenue expect to recognize period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Deferred revenue expect to recognize amount | $ 16.3 |
Deferred revenue expect to recognize period | 1 year |
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 | $ 75.6 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Costs to Obtain a Contract [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Beginning Balance | $ 272,919 | $ 232,583 |
Capitalization of Costs | 28,286 | 20,541 |
Amortization | (10,682) | (8,785) |
Ending Balance | 290,523 | 244,339 |
Costs to Fulfill a Contract [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Beginning Balance | 265,657 | 199,593 |
Capitalization of Costs | 28,630 | 22,178 |
Amortization | (9,206) | (6,802) |
Ending Balance | $ 285,081 | $ 214,969 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 578,420 | $ 546,467 |
Less: accumulated depreciation and amortization | (263,278) | (242,652) |
Property and equipment, net | 362,505 | 348,953 |
Software and Capitalized Software Costs [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 217,501 | 199,470 |
Buildings [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 175,878 | 172,807 |
Computer Equipment [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 109,838 | 102,509 |
Rental Clocks [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 31,833 | 30,313 |
Furniture, Fixtures and Equipment [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 26,851 | 24,971 |
Other [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 16,519 | 16,397 |
Property and Equipment, net, Excluding Land and Construction in Progress [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 315,142 | 303,815 |
Construction in Progress [Member] | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 13,567 | 11,342 |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property and Equipment [Line Items] | |||
Computer software development costs capitalized | $ 15,400 | $ 12,300 | |
Interest costs incurred | 300 | 400 | |
Interest costs capitalized | 100 | 400 | |
Retainage amount included in construction in progress | 400 | $ 100 | |
Depreciation and amortization | 11,663 | 7,716 | |
Property and Equipment [Member] | |||
Property and Equipment [Line Items] | |||
Depreciation and amortization | $ 20,600 | $ 14,900 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill | $ 51,889,000 | $ 51,889,000 | |||
Goodwill impairment amount | $ 0 | ||||
Amortization of intangible assets | 1,000,000 | $ 100,000 | |||
Estimated remaining amortization expense for remainder of 2022 | 3,000,000 | ||||
Estimated remaining amortization expense in 2023 | 3,900,000 | ||||
Estimated remaining amortization expense in 2024 | 3,900,000 | ||||
Estimated remaining amortization expense in 2025 | 3,900,000 | ||||
Estimated remaining amortization expense in 2026 | 3,900,000 | ||||
Estimated remaining amortization expense in 2027 | 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 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 63,393 | $ 63,393 |
Accumulated Amortization | (6,394) | (5,365) |
Net | 56,999 | 58,028 |
Naming Rights [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 60,199 | 60,199 |
Accumulated Amortization | (3,254) | (2,278) |
Net | $ 56,945 | $ 57,921 |
Weighted average remaining useful life | 14 years 7 months 6 days | 14 years 9 months 18 days |
Trade Name [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 3,194 | $ 3,194 |
Accumulated Amortization | (3,140) | (3,087) |
Net | $ 54 | $ 107 |
Weighted average remaining useful life | 3 months 18 days | 6 months |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total long-term debt, net (including current portion) | $ 28,720 | $ 29,155 |
Less: Current portion | (1,775) | (1,775) |
Total long-term debt, net | 26,945 | 27,380 |
Net Term Note to Bank Due September 7, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Term note to bank | $ 28,720 | $ 29,155 |
Long-Term Debt, Net - Schedul_2
Long-Term Debt, Net - Schedule of Long-Term Debt (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
Net Term Note to Bank Due September 7, 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument maturity date | Sep. 7, 2025 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional Information (Detail) | May 04, 2022USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 1.00% | ||
2018 Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility agreement date | Feb. 12, 2018 | ||
Debt instrument, restrictive covenants | maintain a fixed charge coverage ratio of not less than 1.25 to 1.0 and a funded indebtedness to EBITDA ratio of not greater than 2.0 to 1.0 | ||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Line of credit facility maximum borrowing capacity subject to certain conditions | $ 100,000,000 | ||
Line of credit facility, maturity date | Feb. 12, 2020 | ||
Line of credit facility, borrowings outstanding | $ 0 | ||
2018 Revolving Credit Agreement [Member] | First Amendment to the Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 75,000,000 | ||
Line of credit facility maximum borrowing capacity subject to certain conditions | $ 125,000,000 | ||
Line of credit facility, maturity date | Apr. 15, 2022 | ||
2018 Revolving Credit Agreement [Member] | Swingline Loans [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||
2018 Revolving Credit Agreement [Member] | Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 2,500,000 | ||
2018 Revolving Credit Agreement [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio required by covenants | 1.25 | ||
2018 Revolving Credit Agreement [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Funded indebtedness to EBITDA ratio required by covenants | 2 | ||
2018 Revolving Credit Agreement [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 1.00% | ||
2018 Revolving Credit Agreement [Member] | Adjusted London Interbank Offered Rate LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 1.50% | ||
2022 Revolving Credit Agreement [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | ||
Line of credit facility, maturity date | May 4, 2027 | ||
Line of credit facility, borrowings outstanding | $ 29,000,000 | ||
2022 Revolving Credit Agreement [Member] | Swingline Loans [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 25,000,000 | ||
2022 Revolving Credit Agreement [Member] | Letters of Credit [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 2,500,000 | ||
2022 Revolving Credit Agreement [Member] | Minimum [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio required by covenants | 1.25 | ||
Term Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility agreement date | Dec. 7, 2017 | ||
Debt instrument, restrictive covenants | maintain a fixed charge coverage ratio of not less than 1.25 to 1.0 and a funded indebtedness to EBITDA ratio of not greater than 2.0 to 1.0. | ||
Agreement termination date | May 4, 2022 | ||
Term Credit Agreement [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio required by covenants | 1.25 | ||
Term Credit Agreement [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Funded indebtedness to EBITDA ratio required by covenants | 2 | ||
Term Credit Agreement [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity date | Sep. 7, 2025 | ||
Term Credit Agreement [Member] | Term Loan [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 1.00% | ||
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% | ||
Term Credit Agreement [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance cost | $ 100,000 | $ 100,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Interest Rate Swap [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Derivative maturity date | Sep. 7, 2025 | |
Derivative rate received | one-month USD LIBOR | |
Derivative rate paid, percent | 2.54% | |
Derivative Instrument, notional value | $ 35.5 | |
Derivative instrument gain (loss) under fair value | $ 1.3 | $ 0.7 |
Corporate Investments and Fun_3
Corporate Investments and Funds Held For Clients - Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Cash and cash equivalents, amortized cost | $ 360,594 | $ 277,978 | ||
Funds held for clients cash and cash equivalents, amortized cost | 3,600,570 | 1,534,894 | ||
Amortized cost | 345,315 | |||
Total investments, amortized cost | 4,306,479 | 2,124,551 | ||
Gross unrealized losses | [1] | (1,522) | ||
Cash and cash equivalents, fair value | 360,594 | 277,978 | $ 215,093 | |
Funds held for clients cash and cash equivalents, fair value | 3,600,570 | 1,534,894 | ||
Fair value | 343,793 | |||
Total investments, fair value | 4,304,957 | 2,124,551 | ||
Available-for-sale Securities [Member] | Commercial Paper [Member] | ||||
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Amortized cost | [2] | 245,848 | 311,679 | |
Gross unrealized losses | [1],[2] | (725) | ||
Fair value | [2] | 245,123 | $ 311,679 | |
Available-for-sale Securities [Member] | U.S. Treasury Securities [Member] | ||||
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Amortized cost | [2] | 74,467 | ||
Gross unrealized losses | [1],[2] | (797) | ||
Fair value | [2] | 73,670 | ||
Available-for-sale Securities [Member] | Certificates of Deposit [Member] | ||||
Corporate Investments and Funds Held for Clients [Line Items] | ||||
Amortized cost | [2] | 25,000 | ||
Fair value | [2] | $ 25,000 | ||
[1] | These securities have been in an unrealized loss position for a period of less than 12 months. | |||
[2] | All available-for-sale securities were included within funds held for clients. |
Corporate Investments and Fun_4
Corporate Investments and Funds Held For Clients - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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_5
Corporate Investments and Funds Held For Clients - Summary of Expected Maturities of Available for Sale Securities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | |
Amortized cost, One year or less | $ 270,848 |
One year to five years | 74,467 |
Amortized cost | 345,315 |
Fair value, One year or less | 270,123 |
Fair value, One year to five years | 73,670 |
Fair value,Total available-for-sale securities | $ 343,793 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Commercial Paper [Member] | ||
Assets: | ||
Assets | $ 245,123 | $ 311,679 |
Certificates of Deposit [Member] | ||
Assets: | ||
Assets | 25,000 | |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Assets | 73,670 | |
Level 2 [Member] | Commercial Paper [Member] | ||
Assets: | ||
Assets | 245,123 | 311,679 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Assets: | ||
Assets | 25,000 | |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Assets | 73,670 | |
Interest Rate Swap [Member] | ||
Liabilities: | ||
Liabilities | 72 | 1,335 |
Interest Rate Swap [Member] | Level 2 [Member] | ||
Liabilities: | ||
Liabilities | $ 72 | $ 1,335 |
Employee Savings Plan and Emp_2
Employee Savings Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 | 100.00% | |
Minimum period for vesting 100% contributions | 2 years | |
Minimum period for vesting of discretionary contributions | 2 years | |
Matching contribution | $ 3,500,000 | $ 3,300,000 |
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 | 10.00% | |
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 | 85.00% | |
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 | 19,133 | 15,762 |
Compensation expense related to ESPP | $ 600,000 | $ 700,000 |
After Two Years Of Employment [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Matching contributions, vesting percentage | 100.00% | |
One Hundred Percent Match For Percent Of Participants Contribution [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution percentage | 100.00% | |
Percentage of salary deferrals | 1.00% | |
50% Matching Contribution [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution percentage | 50.00% | |
Minimum [Member] | 50% Matching Contribution [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of salary deferrals | 2.00% | |
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 | 6.00% |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net income | $ 91,930 | $ 64,616 |
Denominator: | ||
Basic weighted average shares outstanding | 58,014 | 57,740 |
Dilutive effect of unvested restricted stock | 205 | 654 |
Diluted weighted average shares outstanding | 58,219 | 58,394 |
Earnings per share: | ||
Earnings per share, basic | $ 1.58 | $ 1.12 |
Earnings per share, diluted | $ 1.58 | $ 1.11 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2022CompanyTradingDayshares | Mar. 31, 2022USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Capitalized compensation cost | $ | $ 1,891 | $ 1,456 | |
Software and Capitalized Software Costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Capitalized compensation cost | $ | $ 1,900 | 1,500 | |
Restricted Stock [Member] | LTIP [Member] | Non-executive Employees and Non-employee Members [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted shares of common stock issued | 209,203 | ||
Restricted Stock [Member] | LTIP [Member] | Market-Based Shares [Member] | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted shares of common stock issued | 59,503 | ||
Restricted Stock [Member] | LTIP [Member] | VWAP Value Equals or Exceeds $484 Per Share [Member] | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting percentage, restricted shares | 50.00% | ||
VWAP Share Price | $ / shares | $ 484 | ||
Restricted Stock [Member] | LTIP [Member] | Time-Based Shares [Member] | Non-executive Employees and Non-employee Members [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted shares of common stock issued | 149,700 | ||
Restricted Stock [Member] | LTIP [Member] | VWAP Value Equals or Exceeds $559 Per Share [Member] | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting percentage, restricted shares | 50.00% | ||
VWAP Share Price | $ / shares | $ 559 | ||
Restricted Stock [Member] | LTIP [Member] | Time Based Vesting First Portion Tranche One | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting percentage, restricted shares | 21.00% | ||
Restricted Stock [Member] | LTIP [Member] | Time Based Vesting First Portion Tranche Two | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting percentage, restricted shares | 21.00% | ||
Restricted Stock [Member] | LTIP [Member] | Time Based Vesting First Portion Tranche Three | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting percentage, restricted shares | 25.00% | ||
Restricted Stock [Member] | LTIP [Member] | Time Based Vesting First Portion Tranche Four | Non Executive Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting percentage, restricted shares | 33.00% | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Restricted shares of common stock issued | 51,500 | ||
Performance Shares | LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Number of publicly traded companies | Company | 35 | ||
Number of trading day | TradingDay | 60 | ||
Performance Shares | LTIP [Member] | Executive Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Performance share units | 51,494 | ||
Performance Shares | LTIP [Member] | Executive Officers | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Performance share units | 128,735 | ||
Performance Shares | LTIP [Member] | Two Year Performance Period | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Performance period commencement date | Jan. 1, 2022 | ||
Performance period maturity date | Dec. 31, 2023 | ||
Percentage of PSUs eligible to vest | 25.00% | ||
Deadline for vesting of shares | Feb. 29, 2024 | ||
Performance Shares | LTIP [Member] | Three Year Performance Period | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Performance period commencement date | Jan. 1, 2022 | ||
Performance period maturity date | Dec. 31, 2024 | ||
Percentage of PSUs eligible to vest | 75.00% | ||
Deadline for vesting of shares | Mar. 1, 2025 | ||
Restricted Stock Awards and PSU Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ | $ 22,100 | $ 23,600 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Nonvested Restricted Stock Awards and PSU Activity (Detail) | 3 Months Ended | |
Mar. 31, 2022$ / sharesshares | ||
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 PSUs outstanding at beginning of period | shares | 369,600 | |
Restricted Stock Awards and PSUs, Granted | shares | 149,700 | |
Restricted Stock Awards and PSUs, Vested | shares | (3,900) | |
Restricted Stock Awards and PSUs, Forfeited | shares | (11,200) | |
Unvested shares of restricted stock and PSUs outstanding at end of period | shares | 504,200 | |
Unvested shares of restricted stock and PSUs outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ 259.94 | |
Granted, Weighted Average Grant Date Fair Value Per Share | 321.21 | |
Vested, Weighted Average Grant Date Fair Value Per Share | 114.94 | |
Forfeited, Weighted Average Grant Date Fair Value Per Share | 319.01 | |
Unvested shares of restricted stock and PSUs outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ 277.92 | |
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 PSUs outstanding at beginning of period | shares | 1,628,300 | |
Restricted Stock Awards and PSUs, Granted | shares | 59,500 | |
Restricted Stock Awards and PSUs, Forfeited | shares | (2,100) | |
Unvested shares of restricted stock and PSUs outstanding at end of period | shares | 1,685,700 | |
Unvested shares of restricted stock and PSUs outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ 111.87 | |
Granted, Weighted Average Grant Date Fair Value Per Share | 268.93 | |
Vested, Weighted Average Grant Date Fair Value Per Share | 278.24 | |
Forfeited, Weighted Average Grant Date Fair Value Per Share | 281.75 | |
Unvested shares of restricted stock and PSUs outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ 117.20 | |
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 PSUs outstanding at beginning of period | shares | 37,100 | |
Restricted Stock Awards and PSUs, Granted | shares | 51,500 | |
Unvested shares of restricted stock and PSUs outstanding at end of period | shares | 88,600 | [1] |
Unvested shares of restricted stock and PSUs outstanding, Weighted Average Grant Date Fair Value Per Share, at beginning of period | $ 556.50 | |
Granted, Weighted Average Grant Date Fair Value Per Share | 296.07 | |
Unvested shares of restricted stock and PSUs outstanding, Weighted Average Grant Date Fair Value Per Share, at end of period | $ 405.17 | [1] |
[1] | A maximum of 221,549 units could be awarded based upon Paycom’s Relative TSR over the applicable performance periods. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Nonvested Restricted Stock Awards and PSU Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2022shares | |
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 awarded based upon relative TSR over applicable performance periods. | 221,549 |
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 PSU Awards (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Unrecognized compensation cost | $ 242,128 |
Weighted average period for recognition (years) | 3 years 6 months |
Performance-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Unrecognized compensation cost | $ 26,009 |
Weighted average period for recognition (years) | 2 years 1 month 6 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 27.90% | 32.10% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | May 04, 2022 | May 02, 2022 | Apr. 22, 2022 | Apr. 14, 2022 | Mar. 31, 2022 |
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Term Credit Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Agreement termination date | May 4, 2022 | ||||
Term Credit Agreement [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Fixed charge coverage ratio | 1.25 | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | ||||
Additional credit facility capacity, subject to certain conditions | $ 100,000,000 | ||||
Line of credit facility, maturity date | May 4, 2027 | ||||
Quarterly commitment fee | 0.20% | ||||
Line of credit | $ 29,000,000 | ||||
Line of credit facility increase in rate of interest in event of default | 2.00% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Fixed charge coverage ratio | 1.25 | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Leverage ratio | 2.25 | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Bloomberg Short-Term Bank Yield Index [Member] | Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Bloomberg Short-Term Bank Yield Index [Member] | Leverage Ratio Is Greater Than Or Equal To 1.0 To 1.0 [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.375% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Federal Funds Rate Plus [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.50% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | BSBY Rate Plus [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.00% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | BSBY Rate Plus [Member] | Term Loan [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 1.125% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Interest Rate Floors | Leverage Ratio Is Less Than 1.0 To 1.0 [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.125% | ||||
Subsequent Event [Member] | 2022 Revolving Credit Agreement [Member] | Interest Rate Floors | Leverage Ratio Is Greater Than Or Equal To 1.0 To 1.0 [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.375% | ||||
Subsequent Event [Member] | Swingline Loans [Member] | 2022 Revolving Credit Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | ||||
Subsequent Event [Member] | Letters of Credit [Member] | 2022 Revolving Credit Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000 | ||||
Subsequent Event [Member] | Time-Based Shares [Member] | Chief Operating Officer [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares vested in period | 5,663 | ||||
Subsequent Event [Member] | Restricted Stock [Member] | LTIP [Member] | Non Employee Members [Member] | |||||
Subsequent Event [Line Items] | |||||
Restricted shares of common stock issued | 4,608 | ||||
Subsequent Event [Member] | Restricted Stock [Member] | LTIP [Member] | Time-Based Shares [Member] | |||||
Subsequent Event [Line Items] | |||||
Restricted shares of common stock issued | 45,303 |