Document and Entity Information
Document and Entity Information | 9 Months Ended |
Feb. 28, 2022shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --05-31 |
Document Fiscal Year Focus | 2022 |
Document Period End Date | Feb. 28, 2022 |
Document Transition Report | false |
Entity File Number | 0-11330 |
Entity Registrant Name | Paychex, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 16-1124166 |
Entity Address, Address Line One | 911 Panorama Trail South |
Entity Address, City or Town | Rochester |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 14625-2396 |
City Area Code | 585 |
Local Phone Number | 385-6666 |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | PAYX |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 361,017,389 |
Entity Central Index Key | 0000723531 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue: | ||||
Total service revenue | $ 1,261.6 | $ 1,096.6 | $ 3,424.4 | $ 2,982.8 |
Interest on funds held for clients | 14.4 | 15.1 | 43 | 44.8 |
Total revenue | 1,276 | 1,111.7 | 3,467.4 | 3,027.6 |
Expenses: | ||||
Cost of service revenue | 352.2 | 328.4 | 996.3 | 955.4 |
Selling, general and administrative expenses | 361 | 314.7 | 1,025.1 | 965.3 |
Total expenses | 713.2 | 643.1 | 2,021.4 | 1,920.7 |
Operating income | 562.8 | 468.6 | 1,446 | 1,106.9 |
Other expense, net | (8.5) | (6) | (10.2) | (18.6) |
Income before income taxes | 554.3 | 462.6 | 1,435.8 | 1,088.3 |
Income taxes | 123.6 | 112.1 | 339.4 | 253.8 |
Net income | 430.7 | 350.5 | 1,096.4 | 834.5 |
Other comprehensive (loss)/income, net of tax | (50.8) | (15.9) | (98.8) | 0.7 |
Comprehensive income | $ 379.9 | $ 334.6 | $ 997.6 | $ 835.2 |
Basic earnings per share | $ 1.19 | $ 0.97 | $ 3.04 | $ 2.32 |
Diluted earnings per share | $ 1.19 | $ 0.97 | $ 3.02 | $ 2.31 |
Weighted-average common shares outstanding | 360.9 | 360.6 | 360.6 | 359.8 |
Weighted-average common shares outstanding, assuming dilution | 363.4 | 362.8 | 363.1 | 362 |
Management Solutions [Member] | ||||
Revenue: | ||||
Total service revenue | $ 959.9 | $ 846.8 | $ 2,597.4 | $ 2,267 |
PEO And Insurance Solutions [Member] | ||||
Revenue: | ||||
Total service revenue | $ 301.7 | $ 249.8 | $ 827 | $ 715.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 267.5 | $ 995.2 |
Restricted cash | 55.8 | 51.3 |
Corporate investments | 1,086 | 36.7 |
Interest receivable | 20.4 | 24.4 |
Accounts receivable, net of allowance for credit losses | 720.9 | 578.3 |
PEO unbilled receivables, net of advance collections | 463.4 | 450.9 |
Prepaid income taxes | 41.7 | 33.5 |
Prepaid expenses and other current assets | 277.5 | 249.2 |
Current assets before funds held for clients | 2,933.2 | 2,419.5 |
Funds held for clients | 4,304.1 | 3,750 |
Total current assets | 7,237.3 | 6,169.5 |
Long-term restricted cash | 25.5 | 37 |
Long-term corporate investments | 5.1 | 7.1 |
Property and equipment, net of accumulated depreciation | 399.5 | 395.8 |
Operating lease right-of-use assets, net of accumulated amortization | 84 | 103 |
Intangible assets, net of accumulated amortization | 234.8 | 275.8 |
Goodwill | 1,831.8 | 1,820.7 |
Long-term deferred costs | 414.1 | 384.1 |
Other long-term assets | 51.6 | 34.2 |
Total assets | 10,283.7 | 9,227.2 |
LIABILITIES | ||
Accounts payable | 111.4 | 89 |
Accrued corporate compensation and related items | 177.2 | 209.7 |
Accrued worksite employee compensation and related items | 636 | 586.4 |
Short-term borrowings | 8.7 | 7.4 |
Deferred revenue | 37.1 | 37.9 |
Other current liabilities | 382.4 | 336.8 |
Current liabilities before client fund obligations | 1,352.8 | 1,267.2 |
Client fund obligations | 4,335.1 | 3,671 |
Total current liabilities | 5,687.9 | 4,938.2 |
Accrued income taxes | 56.8 | 25.8 |
Deferred income taxes | 188.5 | 218 |
Long-term borrowings, net of debt issuance costs | 797.6 | 797.3 |
Operating lease liabilities | 79.3 | 92.4 |
Other long-term liabilities | 187.6 | 207.5 |
Total liabilities | 6,997.7 | 6,279.2 |
Commitments and contingencies - Note H | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $0.01 par value; Authorized: 600.0 shares; Issued and outstanding: 361.0 shares as of February 28, 2022 and 359.8 shares as of May 31, 2021 | 3.6 | 3.6 |
Additional paid-in capital | 1,530.9 | 1,446.7 |
Retained earnings | 1,798.5 | 1,445.9 |
Accumulated other comprehensive (loss)/income | (47) | 51.8 |
Total stockholders' equity | 3,286 | 2,948 |
Total liabilities and stockholders' equity | $ 10,283.7 | $ 9,227.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 28, 2022 | May 31, 2021 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 361,000,000 | 359,800,000 |
Common stock, shares outstanding | 361,000,000 | 359,800,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | |
Beginning balance, Shares at May. 31, 2020 | 358.8 | |||||
Beginning balance at May. 31, 2020 | $ 2,781.4 | $ 3.6 | $ 1,289.9 | $ 1,431.4 | $ 56.5 | |
Net income | 834.5 | 834.5 | ||||
Unrealized losses on securities, net of tax benefit | (12.7) | (12.7) | ||||
Reclassification adjustment for realized gains on securities, net of tax expense | [1] | (0.8) | (0.8) | |||
Cash dividends declared | (670.5) | (670.5) | ||||
Repurchases of common shares, Shares | [2] | (0.9) | ||||
Repurchases of common shares | [2] | (76) | (1.7) | (74.3) | ||
Stock-based compensation costs | 38.1 | 38.1 | ||||
Foreign currency translation adjustment | 14.2 | 14.2 | ||||
Activity related to equity-based plans, Shares | 2.4 | |||||
Activity related to equity-based plans | 68.2 | 90 | (21.8) | |||
Ending balance, Shares at Feb. 28, 2021 | 360.3 | |||||
Ending balance at Feb. 28, 2021 | 2,976.4 | $ 3.6 | 1,416.3 | 1,499.3 | 57.2 | |
Beginning balance, Shares at Nov. 30, 2020 | 360.6 | |||||
Beginning balance at Nov. 30, 2020 | 2,889.7 | $ 3.6 | 1,394.1 | 1,418.9 | 73.1 | |
Net income | 350.5 | 350.5 | ||||
Unrealized losses on securities, net of tax benefit | (20) | (20) | ||||
Reclassification adjustment for realized gains on securities, net of tax expense | [1] | (0.3) | (0.3) | |||
Cash dividends declared | (223.8) | (223.8) | ||||
Repurchases of common shares, Shares | [2] | (0.5) | ||||
Repurchases of common shares | [2] | (47.2) | (1) | (46.2) | ||
Stock-based compensation costs | 12.6 | 12.6 | ||||
Foreign currency translation adjustment | 4.4 | 4.4 | ||||
Activity related to equity-based plans, Shares | 0.2 | |||||
Activity related to equity-based plans | 10.5 | 10.6 | (0.1) | |||
Ending balance, Shares at Feb. 28, 2021 | 360.3 | |||||
Ending balance at Feb. 28, 2021 | $ 2,976.4 | $ 3.6 | 1,416.3 | 1,499.3 | 57.2 | |
Beginning balance, Shares at May. 31, 2021 | 359.8 | 359.8 | ||||
Beginning balance at May. 31, 2021 | $ 2,948 | $ 3.6 | 1,446.7 | 1,445.9 | 51.8 | |
Net income | 1,096.4 | 1,096.4 | ||||
Unrealized losses on securities, net of tax benefit | (83) | (83) | ||||
Reclassification adjustment for realized gains on securities, net of tax expense | [3] | (0.1) | (0.1) | |||
Cash dividends declared | (714.9) | (714.9) | ||||
Stock-based compensation costs | 39.2 | 39.2 | ||||
Foreign currency translation adjustment | (15.7) | (15.7) | ||||
Activity related to equity-based plans, Shares | 1.2 | |||||
Activity related to equity-based plans | $ 16.1 | $ 0 | 45 | (28.9) | ||
Ending balance, Shares at Feb. 28, 2022 | 361 | 361 | ||||
Ending balance at Feb. 28, 2022 | $ 3,286 | $ 3.6 | 1,530.9 | 1,798.5 | (47) | |
Beginning balance, Shares at Nov. 30, 2021 | 360.8 | |||||
Beginning balance at Nov. 30, 2021 | 3,119.8 | $ 3.6 | 1,505.5 | 1,606.9 | 3.8 | |
Net income | 430.7 | 430.7 | ||||
Unrealized losses on securities, net of tax benefit | (50.3) | (50.3) | ||||
Cash dividends declared | (238.5) | (238.5) | ||||
Stock-based compensation costs | 12.8 | 12.8 | ||||
Foreign currency translation adjustment | (0.5) | (0.5) | ||||
Activity related to equity-based plans, Shares | 0.2 | |||||
Activity related to equity-based plans | $ 12 | $ 0 | 12.6 | (0.6) | ||
Ending balance, Shares at Feb. 28, 2022 | 361 | 361 | ||||
Ending balance at Feb. 28, 2022 | $ 3,286 | $ 3.6 | $ 1,530.9 | $ 1,798.5 | $ (47) | |
[1] | Reclassification adjustments out of accumulated other comprehensive income for realized gains, net of tax, on the sale of AFS securities are reflected in interest on funds held for clients and other expense, net on the Consolidated Statements of Income and Comprehensive Income. | |||||
[2] | The Company maintains two programs to repurchase up to $ 400.0 million of its common stock under each program, with authorization expiring on May 31, 2022 and January 31, 2024 , respectively. The purpose of these programs is to manage common stock dilution. All shares of common stock repurchased were retired. | |||||
[3] | Reclassification adjustments out of accumulated other comprehensive income for realized gains, net of tax, on the sale of available-for-sale (“AFS”) securities are reflected in interest on funds held for clients and other expense, net on the Consolidated Statements of Income and Comprehensive Income. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Unrealized losses on securities, tax | $ 16.5 | $ 6.5 | $ 27.1 | $ 4.1 |
Reclassification adjustment for realized gains on securities, tax | $ 0.2 | |||
Cash dividends declared, per share | $ 0.66 | $ 0.62 | $ 1.98 | $ 1.86 |
Authorized In May 2019 [Member] | ||||
Approved repurchase amount | $ 400 | $ 400 | $ 400 | $ 400 |
Expiration date | May 31, 2022 | May 31, 2022 | May 31, 2022 | May 31, 2022 |
Authorized In July 2021 [Member] | ||||
Approved repurchase amount | $ 400 | $ 400 | ||
Expiration date | Jan. 31, 2024 | Jan. 31, 2024 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Operating activities | ||
Net income | $ 1,096.4 | $ 834.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 142.7 | 144.6 |
Amortization of premiums and discounts on AFS securities, net | 22.3 | 27.4 |
Amortization of deferred contract costs | 150.2 | 143 |
Stock-based compensation costs | 39.2 | 38.1 |
Provision for/(benefit) from deferred income taxes | 3.3 | (6.6) |
Provision for credit losses | 1.2 | 11.8 |
Net realized gains on sales of AFS securities | (0.1) | (1) |
Changes in operating assets and liabilities: | ||
Interest receivable | 4 | 3.4 |
Accounts receivable and PEO unbilled receivables, net | (156.1) | (330.4) |
Prepaid expenses and other current assets | (26.6) | 3.8 |
Accounts payable and other current liabilities | 53.4 | 128 |
Deferred costs | (190.1) | (146.8) |
Net change in other long-term assets and liabilities | 25.4 | 19.7 |
Net change in operating lease right-of-use assets and liabilities | 3.1 | 1.1 |
Net cash provided by operating activities | 1,168.3 | 870.6 |
Investing activities | ||
Purchases of AFS securities | (7,450.1) | (4,946.5) |
Proceeds from sales and maturities of AFS securities | 6,416.5 | 4,452.4 |
Purchases of property and equipment | (99.3) | (86.9) |
Proceeds from sales of property and equipment | 3.8 | |
Acquisition of businesses, net of cash acquired | (24.9) | (19.5) |
Purchases of other assets | (10.3) | (3.6) |
Net cash used in investing activities | (1,168.1) | (600.3) |
Financing activities | ||
Net change in client fund obligations | 664.1 | 798.5 |
Net change in short-term borrowings | 1.3 | 1.9 |
Dividends paid | (714.9) | (670.5) |
Repurchases of common shares | (76) | |
Activity related to equity-based plans | 16.1 | 68.2 |
Net cash (used in)/provided by financing activities | (33.4) | 122.1 |
Net change in cash, restricted cash, and equivalents | (33.2) | 392.4 |
Cash, restricted cash, and equivalents, beginning of period | 1,823.1 | 1,659.8 |
Cash, restricted cash, and equivalents, end of period | 1,789.9 | 2,052.2 |
Reconciliation of cash, restricted cash, and equivalents | ||
Cash and cash equivalents | 267.5 | 787 |
Restricted cash | 81.3 | 80.3 |
Restricted cash and restricted cash equivalents included in funds held for clients | $ 1,441.1 | $ 1,184.9 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Significant Accounting Policies | 9 Months Ended |
Feb. 28, 2022 | |
Description of Business, Basis of Presentation, and Significant Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation, and Significant Accounting Policies | Note A: Description of Business, Basis of Presentation, and Significant Accounting Policies Description of business: Paychex, Inc. and its wholly owned subsidiaries (collectively, the “Company” or “Paychex”) is a leading human capital management (“HCM”) software and services company, offering integrated solutions for human resource ("HR"), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (“U.S.”). The Company also has operations in parts of Europe. Paychex, a Delaware corporation formed in 1979, reports as one segment. Basis of presentation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statement presentation. The consolidated financial statements include the consolidated accounts of the Company with all intercompany transactions eliminated. Certain disclosures are reported as zero balances due to rounding. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair statement of the results for the interim period. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related Notes to Consolidated Financial Statements presented in the Company’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended May 31, 2021 (“fiscal 2021”). Operating results and cash flows for the nine months ended February 28, 2022 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2022 (“fiscal 2022 ”). Restricted cash and restricted cash equivalents: Restricted cash and restricted cash equivalents are recorded at fair value, and consist of cash and cash equivalents, primarily money market securities, included in funds held for clients and cash that is restricted in use to secure commitments for certain workers’ compensation insurance policies. Accounts receivable, net of allowance for credit losses: Accounts receivable balances are shown on the Consolidated Balance Sheets net of the allowance for credit losses of $ 17.8 million and $ 16.0 million as of February 28, 2022 and May 31, 2021, respectively. These balances include trade receivables for services provided to clients and purchased receivables related to payroll funding arrangements with clients in the temporary staffing industry. Trade receivables were $ 120.2 million and $ 98.4 million as of February 28, 2022 and May 31, 2021, respectively. Purchased receivables, at gross, were $ 618.5 million and $ 495.9 million as of February 28, 2022 and May 31, 2021, respectively. The Company is exposed to credit losses through the sale of services, payment of client obligations, and collection of purchased receivables. To mitigate this credit risk, the Company has multiple programs in place to assess and continuously monitor each client’s ability to pay for products and services. Credit monitoring programs include, but are not limited to, new client credit reviews, establishing appropriate credit limits, monitoring of credit distressed clients, and early electronic wire and collection procedures. The Company also considers contract terms and conditions, client business type or strategy and may require collateralized asset support or prepayment to mitigate credit risk. Accounts receivable are written off and charged against the allowance for credit losses when the Company has exhausted all collection efforts without success. The Company estimates its credit losses based on historical loss activity adjusted for current economic conditions and reasonable and supportable forecast factors, when applicable. The provision for the allowance for credit losses and accounts written off were no t material for the three and nine months ended February 28, 2022 and February 28, 2021 . No single client had a material impact on total accounts receivable as of February 28, 2022 and May 31, 2021 or service revenue and results of operations for the three and nine months ended February 28, 2022 and February 28, 2021 . Professional Employer Organization (“PEO”) unbilled receivables, net of advance collections: PEO unbilled receivables, including estimated revenues, offset by advance collections from clients, are recorded as PEO unbilled receivables, net of advance collections on the Company’s Consolidated Balance Sheets. As of February 28, 2022 and May 31, 2021, advance collections were $ 1.6 million and $ 2.5 million, respectively. PEO insurance reserves: As part of its PEO solution, the Company offers workers’ compensation insurance and health insurance coverage to clients for the benefit of client employees. Workers’ compensation insurance is primarily provided under fully insured high deductible workers’ compensation insurance policies. Workers’ compensation insurance reserves are established to provide for the estimated costs of paying claims up to per occurrence liability limits. These reserves include estimates of certain expenses associated with processing and settling these claims. In establishing the PEO workers’ compensation insurance reserves, the Company uses an independent actuarial estimate of undiscounted future cash payments that would be made to settle claims. The determination of estimated ultimate losses by the Company’s independent actuary are based on accepted actuarial methods and assumptions. The estimated ultimate losses are primarily based upon loss development factors and other factors such as the nature of employees’ job responsibilities, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. Each reporting period, changes in actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. For fiscal 2022, the Company has an aggregate maximum liability of $ 2.0 million for claims exceeding $ 1.0 million, and once met, the maximum individual claims liability is $ 1.0 million. The Company’s maximum individual claims liability under its PEO workers’ compensation insurance policies was $ 1.0 million for fiscal 2021. With respect to PEO health insurance coverage, the Company offers various health insurance plans that take the form of either fully insured guaranteed cost plans or fully insured insurance arrangements where the Company retains claims risk. A reserve for insurance arrangements where the Company retains risk is established to provide for the payment of claims in accordance with the Company’s service contract with the carriers. The claims liability includes estimates for reported losses, plus amounts for those claims incurred but not reported, and estimates of certain expenses associated with processing and settling the claims. The Company’s maximum individual claims liability was $ 0.5 million and $ 0.3 million under its policies during fiscal 2022 and fiscal 2021, respectively. Estimating the ultimate cost of future claims is an uncertain and complex process based upon historical loss experience and independent actuarial loss projections, and is subject to change due to multiple factors, including economic trends, changes in legal liability law, and damage awards, all of which could materially impact the reserves as reported in the consolidated financial statements. Accordingly, final claim settlements may vary from the present estimates, particularly with workers’ compensation insurance where those payments may not occur until well into the future. The Company regularly reviews the adequacy of its estimated insurance reserves. Adjustments to previously established reserves are reflected in the results of operations for the period in which the adjustment is identified. Such adjustments could be significant, reflecting any combination of new and adverse or favorable trends. Stock-based compensation costs: The Company has issued stock-based awards to employees and members of its Board of Directors (the “Board”) consisting of stock options, restricted stock units, and restricted stock awards. The Company accounts for all stock-based awards to employees and members of the Board as compensation costs in the consolidated financial statements based on their fair values measured as of the date of grant. These costs are recognized over the requisite service period. Stock-based compensation costs recognized were $ 12.8 million and $ 39.2 million for the three and nine months ended February 28, 2022, respectively, as compared with $ 12.6 million and $ 38.1 million for the three and nine months ended February 28, 2021, respectively. The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the Company’s Form 10-K for fiscal 2021 . Recently adopted accounting pronouncements: In June 2021 , the Company adopted the following Accounting Standards Updates (“ASUs”), no ne of which had a material impact on its consolidated financial statements: • ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs;” and • ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” Recently issued accounting pronouncements: In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.” This ASU will improve the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. ASU No. 2021-10 is effective for financial statements issued for annual periods beginning after December 15, 2021, with early application permitted. This ASU is applicable to the Company's fiscal year beginning June 1, 2022. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers. ASU No. 2021-08 is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company's fiscal year beginning June 1, 2023, and the impact of its adoption on the Company’s consolidated financial statements will depend on the contract assets and liabilities acquired in business combinations after that date. Other recent authoritative guidance issued by the FASB (including technical corrections to the FASB ASC), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission during the nine months ended February 28, 2022 and through the date of this report did not, or are not expected to, have a material impact on the Company’s consolidated financial statements. |
Service Revenue
Service Revenue | 9 Months Ended |
Feb. 28, 2022 | |
Service Revenue [Abstract] | |
Service Revenue | Note B: Service Revenue Service revenue is primarily attributable to fees for providing services to the Company’s clients and is recognized when control of the contracted services is transferred to its clients, in an amount that reflects the consideration it expects to receive in exchange for such services. Insurance Solutions revenue is commissions earned on premiums collected and remitted to insurance carriers. The Company’s contracts generally do not contain specified contract periods and may be terminated by either party with 30 days’ notice of termination. Sales and other applicable non-payroll related taxes are excluded from service revenue. Based upon similar operational and economic characteristics, the Company’s service revenue is disaggregated by Management Solutions and PEO and Insurance Solutions as reported in the Company’s Consolidated Statements of Income and Comprehensive Income. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. Management Solutions Revenue Management Solutions revenue is primarily derived from the Company’s integrated HCM services and HR outsourcing solutions. Clients can select services on an á la carte basis or as part of various product bundles. The Company’s offerings often leverage the information gathered in its base payroll processing service, allowing it to provide comprehensive outsourcing services covering the HCM spectrum. Management Solutions revenue is generally recognized over time as services are performed and the client simultaneously receives and controls the benefits from these services. Revenue earned from delivery service for the distribution of certain client payroll checks and reports is also included in Management Solutions revenue in the Company’s Consolidated Statements of Income and Comprehensive Income. Delivery service revenue is recognized at a point in time following the delivery of payroll checks, reports, quarter-end packages, and tax returns to the Company’s clients. PEO and Insurance Solutions Revenue PEO solutions are sold through the Company’s registered and licensed subsidiaries and offer businesses HCM and HR outsourcing solutions. The Company serves as a co-employer of its clients’ employees, offers health insurance coverage to client employees, and assumes the risks and rewards of workers’ compensation insurance and certain health insurance offerings. PEO Solutions revenue is recognized over time as the services are performed and the client simultaneously receives and controls the benefits from these services. PEO Solutions revenue is reported net of certain pass-through costs billed and incurred, which include payroll wages, payroll taxes, including federal and state unemployment insurance, and health insurance premiums on guaranteed cost benefit plans. For workers’ compensation and health insurance plans where the Company retains risk, revenues and costs are recorded on a gross basis. PEO pass-through costs netted within the PEO and Insurance Solutions revenue are as follows: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Payroll wages and payroll taxes $ 6,546.1 $ 5,518.5 $ 17,909.4 $ 15,479.3 State unemployment insurance (included in payroll wages and payroll taxes) 74.2 73.1 108.2 98.7 Guaranteed cost benefit plans 164.3 146.1 471.9 439.6 Insurance solutions are sold through the Company’s licensed insurance agency, Paychex Insurance Agency, Inc., which provides insurance through a variety of carriers, allowing companies to expand their employee benefit offerings at an affordable cost. Insurance offerings include property and casualty coverage such as workers’ compensation, business-owner policies, commercial auto, cybersecurity, and health and benefits coverage, including health, dental, vision, and life. Insurance Solutions revenue reflects commissions earned on remitted insurance services premiums billed and is recognized over time as services are performed and the client simultaneously receives and controls the benefits from these services. Contract Balances The timing of revenue recognition for Management Solutions and PEO and Insurance Solutions is consistent with the invoicing of clients as they both occur during the respective client payroll period for which the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing. Payments received for certain of the Company’s service offerings for set-up fees are considered a material right. Therefore, the Company defers revenue associated with these set-up fees and recognizes it over the period in which such clients are expected to benefit from the material right, which is approximately three to four years . Changes in deferred revenue related to set-up fees are as follows: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Balance, beginning of period $ 43.8 $ 39.6 $ 40.2 $ 42.6 Deferral of revenue 9.1 6.9 25.4 16.6 Recognition of unearned revenue ( 6.8 ) ( 6.7 ) ( 19.5 ) ( 19.4 ) Balance, end of period $ 46.1 $ 39.8 $ 46.1 $ 39.8 Deferred revenue related to material rights is reported in the deferred revenue and other long-term liabilities line items on the Company’s Consolidated Balance Sheets. As of February 28, 2022, the Company expects to recognize deferred revenue related to these material rights for the remainder of fiscal 2022 and subsequent fiscal years as follows: In millions Estimated Year ending May 31, deferral 2022 $ 6.3 2023 19.4 Thereafter 20.4 Total deferral $ 46.1 Assets Recognized from the Costs to Obtain and Fulfill Contracts The Company recognizes an asset for the incremental costs of obtaining a contract with a client if it is expected that the economic benefit and amortization period will be longer than one year. Incremental costs of obtaining a contract include only those costs that are directly related to the acquisition of a new contract and that would not have been incurred if the contract had not been obtained. The Company does not incur incremental costs to obtain a contract renewal. The Company determined that certain sales commissions and bonuses, including related fringe benefits, meet the capitalization criteria under ASC Subtopic 340-40, “Other Assets and Deferred Costs: Contracts with Customers.” The Company also recognizes an asset for the costs to fulfill a contract with a client if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. Deferred costs to obtain and fulfill contracts are reported in the prepaid expenses and other current assets and long-term deferred costs line items on the Company’s Consolidated Balance Sheets. Amortization expense related to costs to obtain and fulfill a contract are included in cost of service revenue and selling, general and administrative expenses in the Company’s Consolidated Statements of Income and Comprehensive Income and recognized over the expected economic benefit period. The Company regularly reviews its deferred costs for potential impairment and did no t recognize an impairment loss during the nine months ended February 28, 2022 or February 28, 2021. Changes in deferred costs to obtain and fulfill contracts were as follows: Costs to obtain contracts: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Balance, beginning of period $ 500.5 $ 468.1 $ 488.2 $ 473.6 Capitalization of costs 70.1 49.9 169.1 127.5 Amortization ( 44.8 ) ( 41.9 ) ( 131.5 ) ( 125.0 ) Balance, end of period $ 525.8 $ 476.1 $ 525.8 $ 476.1 Costs to fulfill contracts: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Balance, beginning of period $ 70.5 $ 67.4 $ 69.3 $ 67.3 Capitalization of costs 7.4 7.2 21.0 19.3 Amortization ( 6.3 ) ( 6.0 ) ( 18.7 ) ( 18.0 ) Balance, end of period $ 71.6 $ 68.6 $ 71.6 $ 68.6 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 9 Months Ended |
Feb. 28, 2022 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Note C: Basic and Diluted Earnings Per Share Basic and diluted earnings per share were calculated as follows: For the three months ended For the nine months ended February 28, February 28, In millions, except per share amounts 2022 2021 2022 2021 Basic earnings per share: Net income $ 430.7 $ 350.5 $ 1,096.4 $ 834.5 Weighted-average common shares outstanding 360.9 360.6 360.6 359.8 Basic earnings per share $ 1.19 $ 0.97 $ 3.04 $ 2.32 Diluted earnings per share: Net income $ 430.7 $ 350.5 $ 1,096.4 $ 834.5 Weighted-average common shares outstanding 360.9 360.6 360.6 359.8 Dilutive effect of common share equivalents 2.5 2.2 2.5 2.2 Weighted-average common shares outstanding, assuming dilution 363.4 362.8 363.1 362.0 Diluted earnings per share $ 1.19 $ 0.97 $ 3.02 $ 2.31 Weighted-average anti-dilutive common share equivalents 0.3 — 0.3 0.7 Weighted-average common share equivalents that have an anti-dilutive impact are excluded from the computation of diluted earnings per share. |
Other Expense, Net
Other Expense, Net | 9 Months Ended |
Feb. 28, 2022 | |
Other Expense, Net [Abstract] | |
Other Expense, Net | Note D: Other Expense, Net Other expense, net, consisted of the following items: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Interest income on corporate investments $ 0.5 $ 0.3 $ 1.1 $ 1.4 Interest expense ( 9.0 ) ( 8.8 ) ( 27.5 ) ( 26.8 ) Other — 2.5 16.2 6.8 Other expense, net $ ( 8.5 ) $ ( 6.0 ) $ ( 10.2 ) $ ( 18.6 ) |
Funds Held for Clients and Corp
Funds Held for Clients and Corporate Investments | 9 Months Ended |
Feb. 28, 2022 | |
Funds Held for Clients and Corporate Investments [Abstract] | |
Funds Held for Clients and Corporate Investments | Note E: Funds Held for Clients and Corporate Investments Funds held for clients and corporate investments were as follows: February 28, 2022 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other $ 1,441.1 $ — $ — $ 1,441.1 AFS securities: Asset-backed securities 72.5 0.2 ( 0.5 ) 72.2 Corporate bonds 673.4 6.2 ( 5.9 ) 673.7 Municipal bonds 1,616.5 6.3 ( 33.1 ) 1,589.7 U.S. government agency securities 541.0 4.0 ( 8.1 ) 536.9 Variable rate demand notes 1,049.2 — — 1,049.2 Total AFS securities 3,952.6 16.7 ( 47.6 ) 3,921.7 Other 30.9 2.7 ( 1.2 ) 32.4 Total funds held for clients and corporate investments $ 5,424.6 $ 19.4 $ ( 48.8 ) $ 5,395.2 May 31, 2021 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other $ 739.6 $ — $ — $ 739.6 AFS securities: Asset-backed securities 86.5 1.4 — 87.9 Corporate bonds 635.8 28.8 ( 0.2 ) 664.4 Municipal bonds 1,669.0 33.0 ( 2.3 ) 1,699.7 U.S. government agency securities 549.6 20.1 ( 1.5 ) 568.2 Variable rate demand notes — — — — Total AFS securities 2,940.9 83.3 ( 4.0 ) 3,020.2 Other 26.4 7.7 ( 0.1 ) 34.0 Total funds held for clients and corporate investments $ 3,706.9 $ 91.0 $ ( 4.1 ) $ 3,793.8 Included in funds held for clients' money market securities and other restricted cash equivalents as of February 28, 2022 were bank demand deposit accounts, money market funds and commercial paper with a maturity of 90 days or less at acquisition. Included in asset-backed securities as of February 28, 2022 were investment-grade securities primarily collateralized by fixed-rate auto loans and credit card receivables and all have credit ratings of AAA. The primary risk associated with these securities is the collection of the underlying receivables. Collateral on these asset-backed securities has performed as expected through February 28, 2022. Included in corporate bonds as of February 28, 2022 were investment-grade securities covering a wide range of issuers, industries, and sectors primarily carrying credit ratings of A or better and having maturities ranging from March 1, 2022 through December 13, 2028 . Included in municipal bonds as of February 28, 2022 were general obligation bonds, revenue bonds, and pre-refunded municipal bonds primarily carrying credit ratings of AA or better and have maturities ranging from March 1, 2022 through December 15, 2028 . A substantial portion of our portfolios are invested in high credit quality securities with ratings of AA or higher, and A-1/P-1 ratings on short-term securities. The classification of funds held for clients and corporate investments on the Consolidated Balance Sheets was as follows: February 28, May 31, In millions 2022 2021 Funds held for clients $ 4,304.1 $ 3,750.0 Corporate investments 1,086.0 36.7 Long-term corporate investments 5.1 7.1 Total funds held for clients and corporate investments $ 5,395.2 $ 3,793.8 Funds held for clients’ money market securities and other restricted cash equivalents is collected from clients before due dates for payroll tax administration services and employee payment services and is invested until remitted to the applicable tax or regulatory agencies or client employees. Based upon the Company’s intent and its contractual obligation to clients, these funds are considered restricted until they are remitted to fund these client obligations. The Company’s AFS securities reflected a net unrealized loss of $ 30.9 million and a net unrealized gain of $ 79.3 million as of February 28, 2022 and May 31, 2021, respectively. Included in net unrealized losses and gains as of February 28, 2022 and May 31, 2021, were 443 and 137 AFS securities in an unrealized loss position, representing approximately 35 % and 11 % of the total securities held, respectively. AFS securities in an unrealized loss position for which a credit loss has not been recognized were as follows: February 28, 2022 Securities in an unrealized Securities in an unrealized Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Asset-backed securities $ ( 0.3 ) $ 15.0 $ ( 0.2 ) $ 5.9 $ ( 0.5 ) $ 20.9 Corporate bonds ( 5.1 ) 139.7 ( 0.8 ) 17.4 ( 5.9 ) 157.1 Municipal bonds ( 28.2 ) 778.9 ( 4.9 ) 88.3 ( 33.1 ) 867.2 U.S. government agency securities ( 2.3 ) 183.3 ( 5.8 ) 96.2 ( 8.1 ) 279.5 Total $ ( 35.9 ) $ 1,116.9 $ ( 11.7 ) $ 207.8 $ ( 47.6 ) $ 1,324.7 May 31, 2021 Securities in an unrealized Securities in an unrealized Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Asset-backed securities $ — $ 7.1 $ — $ — $ — $ 7.1 Corporate bonds ( 0.2 ) 22.0 — — ( 0.2 ) 22.0 Municipal bonds ( 2.3 ) 288.2 — — ( 2.3 ) 288.2 U.S. government agency securities ( 1.5 ) 102.6 — — ( 1.5 ) 102.6 Total $ ( 4.0 ) $ 419.9 $ — $ — $ ( 4.0 ) $ 419.9 The Company regularly reviews its investment portfolios to determine if any investment is impaired due to changes in credit risk or other potential valuation concerns. The Company believes the investments held as of February 28, 2022 that had gross unrealized losses of $ 47.6 million were not impaired due to credit risk or other valuation concerns, and the Company was not required to record a credit loss or an allowance for credit losses on its AFS securities. The Company believes it is probable that the principal and interest will be collected in accordance with contractual terms and that the unrealized losses on these securities were due to changes in interest rates and were not due to increased credit risk or other valuation concerns. Most of the securities in an unrealized loss position as of February 28, 2022 and May 31, 2021 held an AA rating or better. The Company does not intend to sell these investments until the recovery of their amortized cost basis or maturity and further believes that it is not more-likely-than-not that it will be required to sell these investments prior to that time. The Company’s assessment that an investment is not impaired due to credit risk or other valuation concerns could change in the future due to new developments or changes in the Company’s strategies or assumptions related to any particular investment. Realized gains and losses on the sale of AFS securities are determined by specific identification of the cost basis of each security. On the Consolidated Statements of Income and Comprehensive Income, realized gains and losses from the funds held for clients portfolio and corporate investments portfolio are included in interest on funds held for clients and other expense, net, respectively. Realized gains and losses from the sale of AFS securities were as follows: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Gross realized gains $ 0.0 $ 0.3 $ 0.1 $ 1.0 Gross realized losses ( 0.0 ) — ( 0.0 ) — Net realized gains $ 0.0 $ 0.3 $ 0.1 $ 1.0 The amortized cost and fair value of AFS securities that had stated maturities as of February 28, 2022 are shown below by expected maturity. February 28, 2022 Amortized Fair In millions cost value Maturity date: Due in one year or less $ 319.2 $ 321.2 Due after one year through three years 682.2 690.2 Due after three years through five years 1,227.2 1,213.9 Due after five years 1,724.0 1,696.4 Total $ 3,952.6 $ 3,921.7 Variable rate demand notes (“VRDNs”) are primarily categorized as due after five years in the table above as the contractual maturities on these securities are typically 20 to 30 years . Although these securities are issued as long-term securities, they are priced and traded as short-term instruments because of the liquidity provided through the tender feature. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Feb. 28, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note F: Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting standards related to fair value measurements include a hierarchy for information and valuations used in measuring fair value that is broken down into three levels based on reliability, as follows: • Level 1 valuations are based on quoted prices in active markets for identical instruments that the Company can access at the measurement date. • Level 2 valuations are based on inputs other than quoted prices included in Level 1 that are observable for the instrument, either directly or indirectly, for substantially the full term of the asset or liability including the following: o quoted prices for similar, but not identical, instruments in active markets; o quoted prices for identical or similar instruments in markets that are not active; o inputs other than quoted prices that are observable for the instrument; or o inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement. The carrying values of cash and cash equivalents, restricted cash and restricted cash equivalents, accounts receivable, net of allowance for doubtful accounts, PEO unbilled receivables, net of advance collections, accounts payable and short-term borrowings, when used by the Company, approximate fair value due to the short maturities of these instruments. Marketable securities included in funds held for clients and corporate investments consist primarily of securities classified as AFS and are recorded at fair value on a recurring basis. The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: February 28, 2022 Quoted Significant prices in other Significant Carrying active observable unobservable value markets inputs inputs In millions (Fair value) (Level 1) (Level 2) (Level 3) Assets: Restricted and unrestricted cash equivalents: Commercial paper $ 19.8 $ — $ 19.8 $ — Money market securities 18.6 18.6 — — Total restricted and unrestricted cash equivalents $ 38.4 $ 18.6 $ 19.8 $ — AFS securities: Asset-backed securities $ 72.2 $ — $ 72.2 $ — Corporate bonds 673.7 — 673.7 — Municipal bonds 1,589.7 — 1,589.7 — U.S. government agency securities 536.9 — 536.9 — Variable rate demand notes 1,049.2 — 1,049.2 — Total AFS securities $ 3,921.7 $ — $ 3,921.7 $ — Other $ 32.4 $ 32.4 $ — $ — Liabilities: Other long-term liabilities $ 32.6 $ 32.6 $ — $ — May 31, 2021 Quoted Significant prices in other Significant Carrying active observable unobservable value markets inputs inputs In millions (Fair value) (Level 1) (Level 2) (Level 3) Assets: Restricted and unrestricted cash equivalents: Money market securities $ 2.9 $ 2.9 $ — $ — Total restricted and unrestricted cash equivalents $ 2.9 $ 2.9 $ — $ — AFS securities: Asset-backed securities $ 87.9 $ — $ 87.9 $ — Corporate bonds 664.4 — 664.4 — Municipal bonds 1,699.7 — 1,699.7 — U.S. government agency securities 568.2 — 568.2 — Variable rate demand notes — — — — Total AFS securities $ 3,020.2 $ — $ 3,020.2 $ — Other $ 34.0 $ 34.0 $ — $ — Liabilities: Other long-term liabilities $ 32.6 $ 32.6 $ — $ — In determining the fair value of its assets and liabilities, the Company predominately uses the market approach. Money market securities, which are cash equivalents, are considered Level 1 investments as they are valued based on quoted market prices in active markets. Cash equivalents also include commercial paper which is considered a Level 2 investment as it is valued based on similar, but not identical, instruments in active markets. AFS securities, including asset-backed securities, corporate bonds, municipal bonds, U.S. government agency securities, and VRDNs, when held by the Company, are included in Level 2 and are valued utilizing inputs obtained from an independent pricing service. To determine the fair value of the Company’s Level 2 AFS securities, the independent pricing service uses a variety of inputs, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, new issue data, and monthly payment information. The Company has not adjusted the prices obtained from the independent pricing service because it believes that they are appropriately valued. Assets included as other are mutual fund investments, consisting of participants’ eligible deferral contributions under the Company’s non-qualified and unfunded deferred compensation plans. The related liability is reported as other long-term liabilities. The mutual funds are considered Level 1 investments as they are valued based on quoted market prices in active markets. The Company’s long-term borrowings are accounted for on a historical cost basis. As of February 28, 2022 and May 31, 2021, the fair value of long-term borrowings, net of debt issuance costs was $ 420.2 million and $ 450.2 million for the Senior Notes, Series A, respectively, and $ 426.2 million and $ 457.7 million for the Senior Notes, Series B, respectively. The Company’s long-term borrowings are not traded in active markets, and as a result, its fair values were estimated using a market approach employing Level 2 valuation inputs, including borrowing rates the Company believes are currently available based on loans with similar terms and maturities. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. |
Supplemental Information
Supplemental Information | 9 Months Ended |
Feb. 28, 2022 | |
Supplemental Information [Abstract] | |
Supplemental Information | Note G: Supplemental Information Leases: During the three months ended August 31, 2020, the Company ceased the use of certain leased property and accelerated the amortization of related operating lease right-of-use assets, resulting in an additional $ 24.4 million of expense. This expense was included in the prior year period in selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. The related lease liabilities will be satisfied under the original terms of the lease arrangements, unless buy-outs have been or can be negotiated. Property and equipment, net of accumulated depreciation: Depreciation expense was $ 34.9 million and $ 98.1 million for the three and nine months ended February 28, 2022, respectively, compared to $ 30.4 million and $ 92.1 million for the three and nine months ended February 28, 2021 , respectively. During the three months ended August 31, 2020, the Company disposed of certain furniture and fixtures associated with abandoned leased property and recorded a loss on disposal of $ 5.1 million. The loss was recorded in the prior year period in selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. Goodwill and intangible assets, net of accumulated amortization: Amortization expense relating to intangible assets was $ 13.5 and $ 44.6 million for the three and nine months ended February 28, 2022, respectively, compared to $ 16.0 million and $ 52.5 million for the three and nine months ended February 28, 2021 , respectively. The Company did no t recognize an impairment loss as it relates to its goodwill or intangible assets during the nine months ended February 28, 2022 or February 28, 2021. Short-term financing: Outstanding borrowings on the Company’s credit facilities had a weighted-average interest rate of 1.28 % and 1.16 % as of February 28, 2022 and May 31, 2021, respectively. The unused amount available under these credit facilities as of February 28, 2022 was approximately $ 2.0 billion. On September 17, 2021, the Company amended its $ 500.0 million credit facility with JP Morgan Chase Bank, N.A. (“JPM”). The amendment increases the credit facility’s maximum borrowing capacity to $ 750.0 million, extends the term through September 17, 2026 with the option to extend for two additional one-year periods, and amends interest rate provisions to phase out the use of the London Interbank Offered Rate (“LIBOR”). In addition, the Company amended its $ 1.0 billion credit facility with JPM. The amendment phases out the use of LIBOR and adopts other administrative changes to maintain consistency with the Company’s other credit facilities. The credit facilities contain various financial and operational covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of February 28, 2022. Letters of credit: The Company had irrevocable standby letters of credit available totaling $ 139.7 million and $ 180.4 million as of February 28, 2022 and May 31, 2021 , respectively, required to secure commitments for certain insurance policies. The letters of credit expire at various dates between April 1, 2022 and February 5, 2023 . No amounts were outstanding on these letters of credit as of, or during the nine months ended February 28, 2022 and February 28, 2021, or as of May 31, 2021. Long-term debt: The Company’s long-term debt agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of February 28, 2022 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note H: Commitments and Contingencies Other commitments: The Company had outstanding commitments under existing workers’ compensation insurance agreements and legally binding contractual arrangements, which include immaterial leases that have yet to commence. The Company also enters into various purchase commitments with vendors in the ordinary course of business and had outstanding commitments to purchase approximately $ 5.6 million and $ 7.0 million of capital assets as of February 28, 2022 and May 31, 2021, respectively. In the normal course of business, the Company makes representations and warranties that guarantee the performance of services under service arrangements with clients. Historically, there have been no material losses related to such guarantees. The Company has also entered into indemnification agreements with its officers and directors, which require the Company to defend and, if necessary, indemnify these individuals for certain pending or future claims as they relate to their services provided to the Company. The Company currently self-insures the deductible portion of various insured exposures under certain corporate employee and PEO employee health and medical benefit plans. The Company’s estimated loss exposure under these insurance arrangements is recorded in other current liabilities on the Consolidated Balance Sheets. Historically, the amounts accrued have not been material and were not material as of February 28, 2022. The Company also maintains insurance, in addition to its purchased primary insurance policies, for gap coverage for employment practices liability, errors and omissions, warranty liability, theft and embezzlement, cyber threats, and acts of terrorism, as well as capacity for deductibles and self-insured retentions through its captive insurance company. Contingencies: The Company is subject to various claims and legal matters that arise in the normal course of its business. These include disputes or potential disputes related to breach of contract, tort, employment-related claims, tax claims, statutory, and other matters. The Company’s management currently believes that resolution of any outstanding legal matters will not have a material adverse effect on the Company’s financial position or results of operations. However, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse impact on the Company’s financial position and results of operations in the period in which any such effects are recorded. |
Income Taxes
Income Taxes | 9 Months Ended |
Feb. 28, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note I: Income Taxes The Company’s effective income tax rate was 22.3 % and 24.2 % for the three months ended February 28, 2022 and February 28, 2021, respectively, and 23.6 % and 23.3 % for the nine months ended February 28, 2022 and February 28, 2021, respectively. All periods were impacted by the recognition of net discrete tax benefits related to employee stock-based compensation payments. The effective tax rates for the current periods were also impacted by the recording of a tax benefit related to prior and current years' research and development expenses incurred in the production of customer-facing software. The increase in the effective tax rate for the nine months ended February 28, 2022 was partially impacted by an increase in state income taxes. |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Significant Accounting Policies (Policy) | 9 Months Ended |
Feb. 28, 2022 | |
Description of Business, Basis of Presentation, and Significant Accounting Policies [Abstract] | |
Description of Business | Description of business: Paychex, Inc. and its wholly owned subsidiaries (collectively, the “Company” or “Paychex”) is a leading human capital management (“HCM”) software and services company, offering integrated solutions for human resource ("HR"), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (“U.S.”). The Company also has operations in parts of Europe. Paychex, a Delaware corporation formed in 1979, reports as one segment. |
Basis of Presentation | Basis of presentation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statement presentation. The consolidated financial statements include the consolidated accounts of the Company with all intercompany transactions eliminated. Certain disclosures are reported as zero balances due to rounding. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair statement of the results for the interim period. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related Notes to Consolidated Financial Statements presented in the Company’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended May 31, 2021 (“fiscal 2021”). Operating results and cash flows for the nine months ended February 28, 2022 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2022 (“fiscal 2022 ”). |
Restricted Cash and Restricted Cash Equivalents | Restricted cash and restricted cash equivalents: Restricted cash and restricted cash equivalents are recorded at fair value, and consist of cash and cash equivalents, primarily money market securities, included in funds held for clients and cash that is restricted in use to secure commitments for certain workers’ compensation insurance policies. |
Accounts Receivable, Net of Allowance for Credit Losses | Accounts receivable, net of allowance for credit losses: Accounts receivable balances are shown on the Consolidated Balance Sheets net of the allowance for credit losses of $ 17.8 million and $ 16.0 million as of February 28, 2022 and May 31, 2021, respectively. These balances include trade receivables for services provided to clients and purchased receivables related to payroll funding arrangements with clients in the temporary staffing industry. Trade receivables were $ 120.2 million and $ 98.4 million as of February 28, 2022 and May 31, 2021, respectively. Purchased receivables, at gross, were $ 618.5 million and $ 495.9 million as of February 28, 2022 and May 31, 2021, respectively. The Company is exposed to credit losses through the sale of services, payment of client obligations, and collection of purchased receivables. To mitigate this credit risk, the Company has multiple programs in place to assess and continuously monitor each client’s ability to pay for products and services. Credit monitoring programs include, but are not limited to, new client credit reviews, establishing appropriate credit limits, monitoring of credit distressed clients, and early electronic wire and collection procedures. The Company also considers contract terms and conditions, client business type or strategy and may require collateralized asset support or prepayment to mitigate credit risk. Accounts receivable are written off and charged against the allowance for credit losses when the Company has exhausted all collection efforts without success. The Company estimates its credit losses based on historical loss activity adjusted for current economic conditions and reasonable and supportable forecast factors, when applicable. The provision for the allowance for credit losses and accounts written off were no t material for the three and nine months ended February 28, 2022 and February 28, 2021 . No single client had a material impact on total accounts receivable as of February 28, 2022 and May 31, 2021 or service revenue and results of operations for the three and nine months ended February 28, 2022 and February 28, 2021 . |
Professional Employer Organization ("PEO") Unbilled Receivables, Net of Advance Collections | Professional Employer Organization (“PEO”) unbilled receivables, net of advance collections: PEO unbilled receivables, including estimated revenues, offset by advance collections from clients, are recorded as PEO unbilled receivables, net of advance collections on the Company’s Consolidated Balance Sheets. As of February 28, 2022 and May 31, 2021, advance collections were $ 1.6 million and $ 2.5 million, respectively. |
PEO Insurance Reserves | PEO insurance reserves: As part of its PEO solution, the Company offers workers’ compensation insurance and health insurance coverage to clients for the benefit of client employees. Workers’ compensation insurance is primarily provided under fully insured high deductible workers’ compensation insurance policies. Workers’ compensation insurance reserves are established to provide for the estimated costs of paying claims up to per occurrence liability limits. These reserves include estimates of certain expenses associated with processing and settling these claims. In establishing the PEO workers’ compensation insurance reserves, the Company uses an independent actuarial estimate of undiscounted future cash payments that would be made to settle claims. The determination of estimated ultimate losses by the Company’s independent actuary are based on accepted actuarial methods and assumptions. The estimated ultimate losses are primarily based upon loss development factors and other factors such as the nature of employees’ job responsibilities, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. Each reporting period, changes in actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. For fiscal 2022, the Company has an aggregate maximum liability of $ 2.0 million for claims exceeding $ 1.0 million, and once met, the maximum individual claims liability is $ 1.0 million. The Company’s maximum individual claims liability under its PEO workers’ compensation insurance policies was $ 1.0 million for fiscal 2021. With respect to PEO health insurance coverage, the Company offers various health insurance plans that take the form of either fully insured guaranteed cost plans or fully insured insurance arrangements where the Company retains claims risk. A reserve for insurance arrangements where the Company retains risk is established to provide for the payment of claims in accordance with the Company’s service contract with the carriers. The claims liability includes estimates for reported losses, plus amounts for those claims incurred but not reported, and estimates of certain expenses associated with processing and settling the claims. The Company’s maximum individual claims liability was $ 0.5 million and $ 0.3 million under its policies during fiscal 2022 and fiscal 2021, respectively. Estimating the ultimate cost of future claims is an uncertain and complex process based upon historical loss experience and independent actuarial loss projections, and is subject to change due to multiple factors, including economic trends, changes in legal liability law, and damage awards, all of which could materially impact the reserves as reported in the consolidated financial statements. Accordingly, final claim settlements may vary from the present estimates, particularly with workers’ compensation insurance where those payments may not occur until well into the future. The Company regularly reviews the adequacy of its estimated insurance reserves. Adjustments to previously established reserves are reflected in the results of operations for the period in which the adjustment is identified. Such adjustments could be significant, reflecting any combination of new and adverse or favorable trends. |
Stock-Based Compensation Costs | Stock-based compensation costs: The Company has issued stock-based awards to employees and members of its Board of Directors (the “Board”) consisting of stock options, restricted stock units, and restricted stock awards. The Company accounts for all stock-based awards to employees and members of the Board as compensation costs in the consolidated financial statements based on their fair values measured as of the date of grant. These costs are recognized over the requisite service period. Stock-based compensation costs recognized were $ 12.8 million and $ 39.2 million for the three and nine months ended February 28, 2022, respectively, as compared with $ 12.6 million and $ 38.1 million for the three and nine months ended February 28, 2021, respectively. The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the Company’s Form 10-K for fiscal 2021 . |
Recently Adopted and Issued Accounting Pronouncements | Recently adopted accounting pronouncements: In June 2021 , the Company adopted the following Accounting Standards Updates (“ASUs”), no ne of which had a material impact on its consolidated financial statements: • ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs;” and • ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” Recently issued accounting pronouncements: In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.” This ASU will improve the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. ASU No. 2021-10 is effective for financial statements issued for annual periods beginning after December 15, 2021, with early application permitted. This ASU is applicable to the Company's fiscal year beginning June 1, 2022. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers. ASU No. 2021-08 is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company's fiscal year beginning June 1, 2023, and the impact of its adoption on the Company’s consolidated financial statements will depend on the contract assets and liabilities acquired in business combinations after that date. Other recent authoritative guidance issued by the FASB (including technical corrections to the FASB ASC), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission during the nine months ended February 28, 2022 and through the date of this report did not, or are not expected to, have a material impact on the Company’s consolidated financial statements. |
Service Revenue (Tables)
Service Revenue (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Service Revenue [Abstract] | |
Summary of PEO Pass-Through Costs Netted in Revenue | For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Payroll wages and payroll taxes $ 6,546.1 $ 5,518.5 $ 17,909.4 $ 15,479.3 State unemployment insurance (included in payroll wages and payroll taxes) 74.2 73.1 108.2 98.7 Guaranteed cost benefit plans 164.3 146.1 471.9 439.6 |
Summary of Changes in Deferred Revenue Related to Set-Up Fees | For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Balance, beginning of period $ 43.8 $ 39.6 $ 40.2 $ 42.6 Deferral of revenue 9.1 6.9 25.4 16.6 Recognition of unearned revenue ( 6.8 ) ( 6.7 ) ( 19.5 ) ( 19.4 ) Balance, end of period $ 46.1 $ 39.8 $ 46.1 $ 39.8 |
Summary of Deferred Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | In millions Estimated Year ending May 31, deferral 2022 $ 6.3 2023 19.4 Thereafter 20.4 Total deferral $ 46.1 |
Summary of Changes in Deferred Costs to Obtain and Fulfill Contracts | Costs to obtain contracts: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Balance, beginning of period $ 500.5 $ 468.1 $ 488.2 $ 473.6 Capitalization of costs 70.1 49.9 169.1 127.5 Amortization ( 44.8 ) ( 41.9 ) ( 131.5 ) ( 125.0 ) Balance, end of period $ 525.8 $ 476.1 $ 525.8 $ 476.1 Costs to fulfill contracts: For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Balance, beginning of period $ 70.5 $ 67.4 $ 69.3 $ 67.3 Capitalization of costs 7.4 7.2 21.0 19.3 Amortization ( 6.3 ) ( 6.0 ) ( 18.7 ) ( 18.0 ) Balance, end of period $ 71.6 $ 68.6 $ 71.6 $ 68.6 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | For the three months ended For the nine months ended February 28, February 28, In millions, except per share amounts 2022 2021 2022 2021 Basic earnings per share: Net income $ 430.7 $ 350.5 $ 1,096.4 $ 834.5 Weighted-average common shares outstanding 360.9 360.6 360.6 359.8 Basic earnings per share $ 1.19 $ 0.97 $ 3.04 $ 2.32 Diluted earnings per share: Net income $ 430.7 $ 350.5 $ 1,096.4 $ 834.5 Weighted-average common shares outstanding 360.9 360.6 360.6 359.8 Dilutive effect of common share equivalents 2.5 2.2 2.5 2.2 Weighted-average common shares outstanding, assuming dilution 363.4 362.8 363.1 362.0 Diluted earnings per share $ 1.19 $ 0.97 $ 3.02 $ 2.31 Weighted-average anti-dilutive common share equivalents 0.3 — 0.3 0.7 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Other Expense, Net [Abstract] | |
Schedule of Other Expense, Net | For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Interest income on corporate investments $ 0.5 $ 0.3 $ 1.1 $ 1.4 Interest expense ( 9.0 ) ( 8.8 ) ( 27.5 ) ( 26.8 ) Other — 2.5 16.2 6.8 Other expense, net $ ( 8.5 ) $ ( 6.0 ) $ ( 10.2 ) $ ( 18.6 ) |
Funds Held for Clients and Co_2
Funds Held for Clients and Corporate Investments (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Funds Held for Clients and Corporate Investments [Abstract] | |
Funds Held for Clients and Corporate Investments | February 28, 2022 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other $ 1,441.1 $ — $ — $ 1,441.1 AFS securities: Asset-backed securities 72.5 0.2 ( 0.5 ) 72.2 Corporate bonds 673.4 6.2 ( 5.9 ) 673.7 Municipal bonds 1,616.5 6.3 ( 33.1 ) 1,589.7 U.S. government agency securities 541.0 4.0 ( 8.1 ) 536.9 Variable rate demand notes 1,049.2 — — 1,049.2 Total AFS securities 3,952.6 16.7 ( 47.6 ) 3,921.7 Other 30.9 2.7 ( 1.2 ) 32.4 Total funds held for clients and corporate investments $ 5,424.6 $ 19.4 $ ( 48.8 ) $ 5,395.2 May 31, 2021 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other $ 739.6 $ — $ — $ 739.6 AFS securities: Asset-backed securities 86.5 1.4 — 87.9 Corporate bonds 635.8 28.8 ( 0.2 ) 664.4 Municipal bonds 1,669.0 33.0 ( 2.3 ) 1,699.7 U.S. government agency securities 549.6 20.1 ( 1.5 ) 568.2 Variable rate demand notes — — — — Total AFS securities 2,940.9 83.3 ( 4.0 ) 3,020.2 Other 26.4 7.7 ( 0.1 ) 34.0 Total funds held for clients and corporate investments $ 3,706.9 $ 91.0 $ ( 4.1 ) $ 3,793.8 |
Classification of Investments on Consolidated Balance Sheets | February 28, May 31, In millions 2022 2021 Funds held for clients $ 4,304.1 $ 3,750.0 Corporate investments 1,086.0 36.7 Long-term corporate investments 5.1 7.1 Total funds held for clients and corporate investments $ 5,395.2 $ 3,793.8 |
Securities in Unrealized Loss Position | February 28, 2022 Securities in an unrealized Securities in an unrealized Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Asset-backed securities $ ( 0.3 ) $ 15.0 $ ( 0.2 ) $ 5.9 $ ( 0.5 ) $ 20.9 Corporate bonds ( 5.1 ) 139.7 ( 0.8 ) 17.4 ( 5.9 ) 157.1 Municipal bonds ( 28.2 ) 778.9 ( 4.9 ) 88.3 ( 33.1 ) 867.2 U.S. government agency securities ( 2.3 ) 183.3 ( 5.8 ) 96.2 ( 8.1 ) 279.5 Total $ ( 35.9 ) $ 1,116.9 $ ( 11.7 ) $ 207.8 $ ( 47.6 ) $ 1,324.7 May 31, 2021 Securities in an unrealized Securities in an unrealized Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Asset-backed securities $ — $ 7.1 $ — $ — $ — $ 7.1 Corporate bonds ( 0.2 ) 22.0 — — ( 0.2 ) 22.0 Municipal bonds ( 2.3 ) 288.2 — — ( 2.3 ) 288.2 U.S. government agency securities ( 1.5 ) 102.6 — — ( 1.5 ) 102.6 Total $ ( 4.0 ) $ 419.9 $ — $ — $ ( 4.0 ) $ 419.9 |
Realized Gains and Losses from Sale of Available-for-sale Securities | For the three months ended For the nine months ended February 28, February 28, In millions 2022 2021 2022 2021 Gross realized gains $ 0.0 $ 0.3 $ 0.1 $ 1.0 Gross realized losses ( 0.0 ) — ( 0.0 ) — Net realized gains $ 0.0 $ 0.3 $ 0.1 $ 1.0 |
Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity | February 28, 2022 Amortized Fair In millions cost value Maturity date: Due in one year or less $ 319.2 $ 321.2 Due after one year through three years 682.2 690.2 Due after three years through five years 1,227.2 1,213.9 Due after five years 1,724.0 1,696.4 Total $ 3,952.6 $ 3,921.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Fair Value Measurements [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: February 28, 2022 Quoted Significant prices in other Significant Carrying active observable unobservable value markets inputs inputs In millions (Fair value) (Level 1) (Level 2) (Level 3) Assets: Restricted and unrestricted cash equivalents: Commercial paper $ 19.8 $ — $ 19.8 $ — Money market securities 18.6 18.6 — — Total restricted and unrestricted cash equivalents $ 38.4 $ 18.6 $ 19.8 $ — AFS securities: Asset-backed securities $ 72.2 $ — $ 72.2 $ — Corporate bonds 673.7 — 673.7 — Municipal bonds 1,589.7 — 1,589.7 — U.S. government agency securities 536.9 — 536.9 — Variable rate demand notes 1,049.2 — 1,049.2 — Total AFS securities $ 3,921.7 $ — $ 3,921.7 $ — Other $ 32.4 $ 32.4 $ — $ — Liabilities: Other long-term liabilities $ 32.6 $ 32.6 $ — $ — May 31, 2021 Quoted Significant prices in other Significant Carrying active observable unobservable value markets inputs inputs In millions (Fair value) (Level 1) (Level 2) (Level 3) Assets: Restricted and unrestricted cash equivalents: Money market securities $ 2.9 $ 2.9 $ — $ — Total restricted and unrestricted cash equivalents $ 2.9 $ 2.9 $ — $ — AFS securities: Asset-backed securities $ 87.9 $ — $ 87.9 $ — Corporate bonds 664.4 — 664.4 — Municipal bonds 1,699.7 — 1,699.7 — U.S. government agency securities 568.2 — 568.2 — Variable rate demand notes — — — — Total AFS securities $ 3,020.2 $ — $ 3,020.2 $ — Other $ 34.0 $ 34.0 $ — $ — Liabilities: Other long-term liabilities $ 32.6 $ 32.6 $ — $ — |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2022USD ($)Item | Feb. 28, 2021USD ($)Item | Feb. 28, 2022USD ($)SegmentItem | Feb. 28, 2021USD ($)Item | May 31, 2022USD ($) | May 31, 2021USD ($)Item | |
Accounting Policies [Line Items] | ||||||
Number of reportable segments | Segment | 1 | |||||
Allowance for credit losses | $ 17.8 | $ 17.8 | $ 16 | |||
Advance collections | 1.6 | 1.6 | 2.5 | |||
Maximum individual health insurance claims liability | 0.3 | |||||
Stock-based compensation costs recognized | $ 12.8 | $ 12.6 | $ 39.2 | $ 38.1 | ||
ASU No. 2020-08 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Change in accounting principle, accounting standards update, adoption date | Jun. 1, 2021 | Jun. 1, 2021 | ||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | ||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | ||||
ASU No. 2019-12 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Change in accounting principle, accounting standards update, adoption date | Jun. 1, 2021 | Jun. 1, 2021 | ||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | ||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | ||||
Forecast [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Maximum individual health insurance claims liability | $ 0.5 | |||||
Trade Receivables [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Receivables | $ 120.2 | $ 120.2 | 98.4 | |||
Purchased Receivables [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Receivables | $ 618.5 | $ 618.5 | $ 495.9 | |||
Accounts And Unbilled Receivables [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Number of clients creating a credit concentration | Item | 0 | 0 | ||||
Revenue [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Number of clients creating a credit concentration | Item | 0 | 0 | 0 | 0 | ||
PEO [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Maximum individual workers' compensation claims liability | $ 1 | |||||
PEO [Member] | Forecast [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Individual workers' compensation claims liability | 1 | |||||
PEO Aggregate Claims Exceeding $1.0M [Member] | Minimum [Member] | Forecast [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Individual workers' compensation claims liability | 1 | |||||
PEO Aggregate Claims Exceeding $1.0M [Member] | Maximum [Member] | Forecast [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Maximum individual workers' compensation claims liability | $ 2 |
Service Revenue (Narrative) (De
Service Revenue (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Service Revenue [Line Items] | ||
Notice of termination period | 30 days | |
Revenue performance obligations | $ 46.1 | |
Revenue performance obligations timing | the Company defers revenue associated with these set-up fees and recognizes it over the period in which such clients are expected to benefit from the material right, which is approximately three to four years | |
Impairment loss | $ 0 | $ 0 |
Minimum [Member] | ||
Service Revenue [Line Items] | ||
Revenue performance obligations timing, years | 3 years | |
Maximum [Member] | ||
Service Revenue [Line Items] | ||
Revenue performance obligations timing, years | 4 years |
Service Revenue (Summary of PEO
Service Revenue (Summary of PEO Pass-Through Costs Netted in Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Service Revenue [Abstract] | ||||
Payroll wages and payroll taxes | $ 6,546.1 | $ 5,518.5 | $ 17,909.4 | $ 15,479.3 |
State unemployment insurance (included in payroll wages and payroll taxes) | 74.2 | 73.1 | 108.2 | 98.7 |
Guaranteed cost benefit plans | $ 164.3 | $ 146.1 | $ 471.9 | $ 439.6 |
Service Revenue (Summary of Cha
Service Revenue (Summary of Changes in Deferred Revenue Related to Set-Up Fees) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Service Revenue [Abstract] | ||||
Balance, beginning of period | $ 43.8 | $ 39.6 | $ 40.2 | $ 42.6 |
Deferral of revenue | 9.1 | 6.9 | 25.4 | 16.6 |
Recognition of unearned revenue | (6.8) | (6.7) | (19.5) | (19.4) |
Balance, end of period | $ 46.1 | $ 39.8 | $ 46.1 | $ 39.8 |
Service Revenue (Summary of Def
Service Revenue (Summary of Deferred Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction) (Details) $ in Millions | Feb. 28, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue related to material rights | $ 46.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, timing of satisfaction | 3 months |
Deferred revenue related to material rights | $ 6.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, timing of satisfaction | 1 year 3 months |
Deferred revenue related to material rights | $ 19.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, timing of satisfaction | |
Deferred revenue related to material rights | $ 20.4 |
Service Revenue (Summary of C_2
Service Revenue (Summary of Changes in Deferred Costs to Obtain and Fulfill Contracts) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Capitalized Contract Cost [Line Items] | ||||
Amortization | $ 150.2 | $ 143 | ||
Costs To Fulfill Contracts [Member] | ||||
Capitalized Contract Cost [Line Items] | ||||
Balance, beginning of period | $ 70.5 | $ 67.4 | 69.3 | 67.3 |
Capitalization of costs | 7.4 | 7.2 | 21 | 19.3 |
Amortization | (6.3) | (6) | (18.7) | (18) |
Balance, end of period | 71.6 | 68.6 | 71.6 | 68.6 |
Costs To Obtain Contracts [Member] | ||||
Capitalized Contract Cost [Line Items] | ||||
Balance, beginning of period | 500.5 | 468.1 | 488.2 | 473.6 |
Capitalization of costs | 70.1 | 49.9 | 169.1 | 127.5 |
Amortization | (44.8) | (41.9) | (131.5) | (125) |
Balance, end of period | $ 525.8 | $ 476.1 | $ 525.8 | $ 476.1 |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Basic earnings per share: | ||||
Net income | $ 430.7 | $ 350.5 | $ 1,096.4 | $ 834.5 |
Weighted-average common shares outstanding | 360.9 | 360.6 | 360.6 | 359.8 |
Basic earnings per share | $ 1.19 | $ 0.97 | $ 3.04 | $ 2.32 |
Diluted earnings per share: | ||||
Net income | $ 430.7 | $ 350.5 | $ 1,096.4 | $ 834.5 |
Weighted-average common shares outstanding | 360.9 | 360.6 | 360.6 | 359.8 |
Dilutive effect of common share equivalents | 2.5 | 2.2 | 2.5 | 2.2 |
Weighted-average common shares outstanding, assuming dilution | 363.4 | 362.8 | 363.1 | 362 |
Diluted earnings per share | $ 1.19 | $ 0.97 | $ 3.02 | $ 2.31 |
Weighted-average anti-dilutive common share equivalents | 0.3 | 0.3 | 0.7 |
Other Expense, Net (Schedule of
Other Expense, Net (Schedule of Other Expense, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Other Expense, Net [Abstract] | ||||
Interest income on corporate investments | $ 0.5 | $ 0.3 | $ 1.1 | $ 1.4 |
Interest expense | (9) | (8.8) | (27.5) | (26.8) |
Other | 2.5 | 16.2 | 6.8 | |
Other expense, net | $ (8.5) | $ (6) | $ (10.2) | $ (18.6) |
Funds Held for Clients and Co_3
Funds Held for Clients and Corporate Investments (Funds Held for Clients and Corporate Investments) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Funds held for clients' money market securities and other restricted cash equivalents, Amortized cost | $ 1,441.1 | $ 739.6 |
Funds held for clients' money market securities and other restricted cash equivalents, Fair value | 1,441.1 | 739.6 |
AFS securities, Amortized cost | 3,952.6 | 2,940.9 |
AFS securities, Gross unrealized gains | 16.7 | 83.3 |
AFS securities, Gross unrealized losses | (47.6) | (4) |
AFS securities, Fair value | 3,921.7 | 3,020.2 |
Other, Amortized cost | 30.9 | 26.4 |
Other, Gross unrealized gains | 2.7 | 7.7 |
Other, Gross unrealized losses | (1.2) | (0.1) |
Other, Fair value | 32.4 | 34 |
Total funds held for clients and corporate investments, Amortized cost | 5,424.6 | 3,706.9 |
Total funds held for clients and corporate investments, Gross unrealized gains | 19.4 | 91 |
Total funds held for clients and corporate investments, Gross unrealized losses | (48.8) | (4.1) |
Total funds held for clients and corporate investments, Fair value | 5,395.2 | 3,793.8 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS securities, Amortized cost | 72.5 | 86.5 |
AFS securities, Gross unrealized gains | 0.2 | 1.4 |
AFS securities, Gross unrealized losses | (0.5) | |
AFS securities, Fair value | 72.2 | 87.9 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS securities, Amortized cost | 673.4 | 635.8 |
AFS securities, Gross unrealized gains | 6.2 | 28.8 |
AFS securities, Gross unrealized losses | (5.9) | (0.2) |
AFS securities, Fair value | 673.7 | 664.4 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS securities, Amortized cost | 1,616.5 | 1,669 |
AFS securities, Gross unrealized gains | 6.3 | 33 |
AFS securities, Gross unrealized losses | (33.1) | (2.3) |
AFS securities, Fair value | 1,589.7 | 1,699.7 |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS securities, Amortized cost | 541 | 549.6 |
AFS securities, Gross unrealized gains | 4 | 20.1 |
AFS securities, Gross unrealized losses | (8.1) | (1.5) |
AFS securities, Fair value | 536.9 | $ 568.2 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS securities, Amortized cost | 1,049.2 | |
AFS securities, Fair value | $ 1,049.2 |
Funds Held for Clients and Co_4
Funds Held for Clients and Corporate Investments (Narrative) (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Feb. 28, 2022USD ($)Security | May 31, 2021USD ($)Security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Net unrealized gains on available-for-sale securities | $ (30.9) | $ 79.3 |
Number of available-for-sale securities in an unrealized loss position | Security | 443 | 137 |
Percentage of available-for-sale securities in an unrealized loss position | 35.00% | 11.00% |
Gross unrealized losses on available-for-sale securities | $ 47.6 | $ 4 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on available-for-sale securities | $ 5.9 | 0.2 |
Corporate Bonds [Member] | Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities maturity date | Mar. 1, 2022 | |
Corporate Bonds [Member] | Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities maturity date | Dec. 13, 2028 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses on available-for-sale securities | $ 33.1 | $ 2.3 |
Municipal Bonds [Member] | Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities maturity date | Mar. 1, 2022 | |
Municipal Bonds [Member] | Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities maturity date | Dec. 15, 2028 | |
Variable Rate Demand Notes [Member] | Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities contractual maturities | 20 years | |
Variable Rate Demand Notes [Member] | Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities contractual maturities | 30 years |
Funds Held for Clients and Co_5
Funds Held for Clients and Corporate Investments (Classification of Investments on Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Funds Held for Clients and Corporate Investments [Abstract] | ||
Funds held for clients | $ 4,304.1 | $ 3,750 |
Corporate investments | 1,086 | 36.7 |
Long-term corporate investments | 5.1 | 7.1 |
Total funds held for clients and corporate investments, Fair value | $ 5,395.2 | $ 3,793.8 |
Funds Held for Clients and Co_6
Funds Held for Clients and Corporate Investments (Securities in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in an unrealized loss position for less than twelve months, Gross unrealized losses | $ (35.9) | $ (4) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (11.7) | |
Total, Gross unrealized losses | (47.6) | (4) |
Securities in an unrealized loss position for less than twelve months, Fair value | 1,116.9 | 419.9 |
Securities in an unrealized loss position for more than twelve months, Fair value | 207.8 | |
Total, Fair value | 1,324.7 | 419.9 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in an unrealized loss position for less than twelve months, Gross unrealized losses | (0.3) | |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (0.2) | |
Total, Gross unrealized losses | (0.5) | |
Securities in an unrealized loss position for less than twelve months, Fair value | 15 | 7.1 |
Securities in an unrealized loss position for more than twelve months, Fair value | 5.9 | |
Total, Fair value | 20.9 | 7.1 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in an unrealized loss position for less than twelve months, Gross unrealized losses | (5.1) | (0.2) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (0.8) | |
Total, Gross unrealized losses | (5.9) | (0.2) |
Securities in an unrealized loss position for less than twelve months, Fair value | 139.7 | 22 |
Securities in an unrealized loss position for more than twelve months, Fair value | 17.4 | |
Total, Fair value | 157.1 | 22 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in an unrealized loss position for less than twelve months, Gross unrealized losses | (28.2) | (2.3) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (4.9) | |
Total, Gross unrealized losses | (33.1) | (2.3) |
Securities in an unrealized loss position for less than twelve months, Fair value | 778.9 | 288.2 |
Securities in an unrealized loss position for more than twelve months, Fair value | 88.3 | |
Total, Fair value | 867.2 | 288.2 |
U.S. Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in an unrealized loss position for less than twelve months, Gross unrealized losses | (2.3) | (1.5) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (5.8) | |
Total, Gross unrealized losses | (8.1) | (1.5) |
Securities in an unrealized loss position for less than twelve months, Fair value | 183.3 | 102.6 |
Securities in an unrealized loss position for more than twelve months, Fair value | 96.2 | |
Total, Fair value | $ 279.5 | $ 102.6 |
Funds Held for Clients and Co_7
Funds Held for Clients and Corporate Investments (Realized Gains and Losses from Sale of Available-for-sale Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Funds Held for Clients and Corporate Investments [Abstract] | ||||
Gross realized gains | $ 0 | $ 0.3 | $ 0.1 | $ 1 |
Gross realized losses | 0 | 0 | ||
Net realized gains | $ 0 | $ 0.3 | $ 0.1 | $ 1 |
Funds Held for Clients and Co_8
Funds Held for Clients and Corporate Investments (Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Funds Held for Clients and Corporate Investments [Abstract] | ||
Due in one year or less, Amortized cost | $ 319.2 | |
Due after one year through three years, Amortized cost | 682.2 | |
Due after three years through five years, Amortized cost | 1,227.2 | |
Due after five years, Amortized cost | 1,724 | |
AFS securities, Amortized cost | 3,952.6 | $ 2,940.9 |
Due in one year or less, Fair value | 321.2 | |
Due after one year through three years, Fair value | 690.2 | |
Due after three years through five years, Fair value | 1,213.9 | |
Due after five years, Fair value | 1,696.4 | |
AFS securities, Fair value | $ 3,921.7 | $ 3,020.2 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | $ 38.4 | $ 2.9 |
Available-for-sale securities | 3,921.7 | 3,020.2 |
Other | 32.4 | 34 |
Other long-term liabilities | 32.6 | 32.6 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | 19.8 | |
Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | 18.6 | 2.9 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 72.2 | 87.9 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 673.7 | 664.4 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,589.7 | 1,699.7 |
U.S. Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 536.9 | 568.2 |
Variable Rate Demand Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,049.2 | |
Quoted Prices in Active Markets (Level 1) [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | 18.6 | 2.9 |
Other | 32.4 | 34 |
Other long-term liabilities | 32.6 | 32.6 |
Quoted Prices in Active Markets (Level 1) [Member] | Money Market Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | 18.6 | 2.9 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | 19.8 | |
Available-for-sale securities | 3,921.7 | 3,020.2 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted and unrestricted cash equivalents | 19.8 | |
Significant Other Observable Inputs (Level 2) [Member] | Asset-Backed Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 72.2 | 87.9 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 673.7 | 664.4 |
Significant Other Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,589.7 | 1,699.7 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Agency Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 536.9 | $ 568.2 |
Significant Other Observable Inputs (Level 2) [Member] | Variable Rate Demand Notes [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 1,049.2 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Senior Notes, Series A [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term borrowings | $ 420.2 | $ 450.2 |
Senior Notes, Series B [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term borrowings | $ 426.2 | $ 457.7 |
Supplemental Information (Narra
Supplemental Information (Narrative) (Details) - USD ($) $ in Millions | Sep. 17, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Aug. 31, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2021 |
Amortization of operating lease right-of-use assets | $ 24.4 | ||||||
Loss on disposal | $ 5.1 | ||||||
Depreciation expense | $ 34.9 | $ 30.4 | $ 98.1 | $ 92.1 | |||
Amortization expense | 13.5 | 16 | 44.6 | 52.5 | |||
Impairment loss relates to goodwill or intangible assets | 0 | 0 | |||||
Revolving Credit Facility [Member] | |||||||
Unused amount available | $ 2,000 | $ 2,000 | |||||
Weighted-average interest rate | 1.28% | 1.28% | 1.16% | ||||
Standby Letters of Credit [Member] | |||||||
Maximum borrowing capacity | $ 139.7 | $ 139.7 | $ 180.4 | ||||
Amounts outstanding | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Standby Letters of Credit [Member] | Minimum [Member] | |||||||
Expiration date | Apr. 1, 2022 | ||||||
Standby Letters of Credit [Member] | Maximum [Member] | |||||||
Expiration date | Feb. 5, 2023 | ||||||
JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | |||||||
Maximum borrowing capacity | $ 1,000 | ||||||
JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | |||||||
Maximum borrowing capacity | 500 | ||||||
JPM $750 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | |||||||
Maximum borrowing capacity | $ 750 | ||||||
Expiration date | Sep. 17, 2026 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 31, 2021 |
Commitments and Contingencies [Abstract] | ||
Commitments to purchase capital assets | $ 5.6 | $ 7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 22.30% | 24.20% | 23.60% | 23.30% |