Document and Entity Information
Document and Entity Information | 6 Months Ended |
Nov. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | PAYCHEX INC |
Entity Filer Category | Large Accelerated Filer |
Entity Central Index Key | 723,531 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Document Type | 10-Q |
Trading Symbol | PAYX |
Document Fiscal Period Focus | Q2 |
Document Period End Date | Nov. 30, 2018 |
Document Fiscal Year Focus | 2,019 |
Current Fiscal Year End Date | --05-31 |
Entity Common Stock, Shares Outstanding | 359,091,176 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | [1] | Nov. 30, 2018 | Nov. 30, 2017 | [1] | |
Revenue: | ||||||
Total service revenue | $ 840.6 | $ 789 | $ 1,686.3 | $ 1,568.2 | ||
Interest on funds held for clients | 18.3 | 14 | 35.4 | 27.7 | ||
Total revenue | 858.9 | 803 | 1,721.7 | 1,595.9 | ||
Expenses: | ||||||
Operating expenses | 264.9 | 248.6 | 530.4 | 480.6 | ||
Selling, general and administrative expenses | 286.8 | 251.3 | 563.8 | 494.9 | ||
Total expenses | 551.7 | 499.9 | 1,094.2 | 975.5 | ||
Operating income | 307.2 | 303.1 | 627.5 | 620.4 | ||
Investment income, net | 2.1 | 1.7 | 4.4 | 3.8 | ||
Income before income taxes | 309.3 | 304.8 | 631.9 | 624.2 | ||
Income taxes | 73.5 | 106 | 152.5 | 215 | ||
Net income | 235.8 | 198.8 | [2] | 479.4 | 409.2 | [2] |
Other comprehensive loss, net of tax | (11.6) | (33.6) | (11.2) | (29.2) | ||
Comprehensive income | $ 224.2 | $ 165.2 | $ 468.2 | $ 380 | ||
Basic earnings per share | $ 0.66 | $ 0.55 | [2] | $ 1.34 | $ 1.14 | [2] |
Diluted earnings per share | $ 0.65 | $ 0.55 | [2] | $ 1.33 | $ 1.13 | [2] |
Weighted-average common shares outstanding | 359.1 | 359.1 | [2] | 359.1 | 359 | [2] |
Weighted-average common shares outstanding, assuming dilution | 361.5 | 361.4 | [2] | 361.5 | 361.4 | [2] |
Management Solutions [Member] | ||||||
Revenue: | ||||||
Total service revenue | $ 685.4 | $ 653.5 | $ 1,373.1 | $ 1,319.4 | ||
PEO And Insurance Services [Member] | ||||||
Revenue: | ||||||
Total service revenue | $ 155.2 | $ 135.5 | $ 313.2 | $ 248.8 | ||
[1] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). | |||||
[2] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 | [1] |
Assets | |||
Cash and cash equivalents | $ 510.6 | $ 358.2 | |
Corporate investments | 248.4 | 66 | |
Interest receivable | 28.6 | 32.2 | |
Accounts receivable, net of allowance for doubtful accounts | 562.6 | 492.4 | |
Prepaid income taxes | 33.3 | 17 | |
Prepaid expenses and other current assets | 234.2 | 224 | |
Current assets before funds held for clients | 1,617.7 | 1,189.8 | |
Funds held for clients | 3,672.3 | 4,703.8 | |
Total current assets | 5,290 | 5,893.6 | |
Long-term corporate investments | 10 | 295.5 | |
Property and equipment, net of accumulated depreciation | 394 | 393.5 | |
Intangible assets, net of accumulated amortization | 128 | 141.4 | |
Goodwill | 810.6 | 814 | |
Long-term deferred costs | 354 | 361 | [2] |
Other long-term assets | 15.8 | 16.4 | |
Total assets | 7,002.4 | 7,915.4 | |
Liabilities | |||
Accounts payable | 70.6 | 73.7 | |
Accrued compensation and related items | 307.9 | 320.6 | |
Short-term borrowings | 57.3 | ||
Deferred revenue | 42.5 | 34.6 | |
Other current liabilities | 111.2 | 132.9 | |
Current liabilities before client fund obligations | 589.5 | 561.8 | |
Client fund obligations | 3,717.3 | 4,734.9 | |
Total current liabilities | 4,306.8 | 5,296.7 | |
Accrued income taxes | 19.7 | 18.4 | |
Deferred income taxes | 161.6 | 154.4 | |
Other long-term liabilities | 89.8 | 89.1 | |
Total liabilities | 4,577.9 | 5,558.6 | |
Commitments and contingencies - Note M | |||
Stockholders' equity | |||
Common stock, $0.01 par value; Authorized: 600.0 shares; Issued and outstanding: 359.1 shares as of November 31, 2018 and 359.0 shares as of May 31, 2018 | 3.6 | 3.6 | |
Additional paid-in capital | 1,165.7 | 1,126.8 | |
Retained earnings | 1,302.6 | 1,262.6 | |
Accumulated other comprehensive loss | (47.4) | (36.2) | |
Total stockholders' equity | 2,424.5 | 2,356.8 | |
Total liabilities and stockholders' equity | $ 7,002.4 | $ 7,915.4 | |
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | ||
[2] | Amounts were previously reported as a component of other long-term assets on the Consolidated Balance Sheets included in the Company's fiscal 2018 Form 10-K. Long-term deferred costs are separately presented on the Consolidated Balance Sheets contained in this Form 10-Q. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2018 | May 31, 2018 |
Stockholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 359,100,000 | 359,000,000 |
Common stock, shares outstanding | 359,100,000 | 359,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | |||
Operating activities | ||||
Net income | $ 479.4 | $ 409.2 | [1],[2] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization on property and equipment and intangible assets | 72.7 | 65.7 | [1] | |
Amortization of premiums and discounts on available-for-sale securities, net | 27.7 | 33.8 | [1] | |
Stock-based compensation costs | 22.8 | 19.1 | [1] | |
Provision for deferred income taxes | 10.9 | 47.2 | [1] | |
Provision for allowance for doubtful accounts | 1.5 | 1.8 | [1] | |
Net realized losses on sales of available-for-sale securities | 0.2 | [1] | ||
Changes in operating assets and liabilities: | ||||
Interest receivable | 3.6 | 0.7 | [1] | |
Accounts receivable | (71.6) | (8.5) | [1] | |
Prepaid expenses and other current assets | (26.7) | (25.8) | [1] | |
Accounts payable and other current liabilities | (30.2) | (35.5) | [1] | |
Deferred costs | 7.3 | 10.6 | [1] | |
Net change in other long-term assets and liabilities | (0.4) | 1.1 | [1] | |
Net cash provided by operating activities | 497.2 | 519.4 | [1] | |
Investing activities | ||||
Purchases of available-for-sale securities | (21,248.8) | (20,324.3) | [1] | |
Proceeds from sales and maturities of available-for-sale securities | 21,364.3 | 20,708.7 | [1] | |
Net change in funds held for clients’ money market securities and other cash equivalents | 985.1 | (1,018) | [1] | |
Purchases of property and equipment | (60.8) | (95.5) | [1] | |
Acquisition of businesses, net of cash acquired | (17.9) | [1] | ||
Purchases of other assets | (1) | (4.1) | [1] | |
Net cash provided by/(used in) investing activities | 1,038.8 | (751.1) | [1] | |
Financing activities | ||||
Net change in client fund obligations | (1,017.6) | 625.3 | [1] | |
Net proceeds from short-term borrowings | 57.3 | 133.4 | [1] | |
Dividends paid | (402.7) | (358.9) | [1] | |
Repurchases of common shares | (32.8) | (94.1) | [1] | |
Activity related to equity-based plans | 12.2 | (1.4) | [1] | |
Net cash (used in)/provided by financing activities | (1,383.6) | 304.3 | [1] | |
Increase in cash and cash equivalents | 152.4 | 72.6 | [1] | |
Cash and cash equivalents, beginning of fiscal year | [1] | 358.2 | 184.6 | |
Cash and cash equivalents, end of period | $ 510.6 | $ 257.2 | [1] | |
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | |||
[2] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). |
Description of Business, Basis
Description of Business, Basis of Presentation, and Significant Accounting Policies | 6 Months Ended |
Nov. 30, 2018 | |
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 provider of integrated human capital management (“HCM”) solutions for payroll, benefits, human resource (“HR”), and insurance services for small- to medium-sized businesses in the United States (“U.S.”). The Company also has operations in Europe. Paychex, a Delaware corporation formed in 1979, reports as one segment. Substantially all of the Company’s revenue is generated within the U.S. The Company also generates revenue within Europe, which represented approximately one percent of the Company’s total revenue for both the three and six months ended November 30, 2018 and was less than one percent of the Company's total revenue for both the three and six months ended November 30, 2017 . Long-lived assets in Europe were approximately 10% of total long-lived assets of the Company as of November 30, 2018 and May 31, 2018 . 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 (“Form 10-Q”) and Article 10 of Regulation S-X. Accordingly, they do not include all of 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. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature), which are 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, 2018 (“fiscal 2018 ”). Operating results and cash flows for the six months ended November 30, 2018 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2019 (“fiscal 2019 ”). Effective June 1, 2018, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as discussed in “Recently adopted accounting pronouncements.” All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standard, as indicated by the “As Adjusted” footnote. Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation in connection with the adoption of ASU No. 2014-09 and had no material effect on reported consolidated earnings. PEO insurance reserves: As part of the professional employer organization (“PEO”) service, the Company offers workers' compensation insurance and health insurance to client companies for the benefit of client employees. For workers' compensation insurance, reserves are established to provide for the estimated costs of paying claims up to per occurrence liability limits. The Company’s maximum individual claims liability, excluding HR Outsourcing Holdings, Inc. (“HROI”), was $1.0 million and $1.3 million under its fiscal 2019 and fiscal 2018 workers' compensation insurance policies, respectively. HROI’s maximum individual claims liability was $0.5 million and $0.8 million under its workers’ compensation insurance policies for the annual periods ended September 30, 2018 and ending September 30, 2019, respectively. Under the minimum premium insurance plan offering within the PEO, the Company's health benefits insurance reserves are established to provide for the payment of claims liability charges in accordance with its service contract with the insurance carrier. The Company's maximum individual claims liability, excluding HROI, was $0.3 million under both its calendar 2018 and 2017 minimum premium insurance plan policies. HROI’s maximum individual claims liability was $0.3 million under its minimum premium insurance plan policies for the annual periods ended June 30, 2018 and ending June 30, 2019 . In addition, the Company also provides self-insured dental and vision plans. Estimating the ultimate cost of future claims is an uncertain and complex process based upon historical loss experience and 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 insurance reserves are reflected in the results of operations for the period in which such adjustments are 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 directors consisting of stock options, restricted stock awards, restricted stock units, performance shares, performance-based restricted stock, and performance-based stock options. The Company accounts for all stock-based awards to employees and directors 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 $11.9 million and $22.8 million for the three and six months ended November 30, 2018 , respectively, as compared with $10.4 million and $19.1 million for the three and six months ended November 30, 2017 . 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 fiscal 2018 Form 10-K. Recently adopted accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This guidance, as amended by subsequent ASUs on the topic, outlines a single comprehensive model for determining revenue recognition for contracts with customers, and supersedes guidance on revenue recognition in ASC Topic 605, “Revenue Recognition.” The Company adopted the new standard on June 1, 2018, utilizing the full retrospective method, which required the Company to recast each prior reporting period presented and included a cumulative adjustment to increase stockholder’s equity by $262.9 million as of June 1, 2016. The Company has updated its control framework for new internal controls and made changes to existing controls related to the new standard. Impact on Previously Reported Results The provisions of ASU No. 2014-09 do not materially impact the timing or the amount of revenue the Company recognizes on an annual basis in its Consolidated Statements of Income and Comprehensive Income. However, it does have an impact on the timing and amount of revenue the Company recognizes on a quarterly basis due to changes in the way it accounts for certain revenues where performance obligations are satisfied at a point in time. The provisions of the new standard have a material impact on the Company’s Consolidated Balance Sheets. The primary impact of adopting the new standard is on the Company’s treatment of certain costs to obtain and fulfill contracts. In relation to those items, the new standard resulted in the Company deferring additional costs on its Consolidated Balance Sheets and amortizing them to the Consolidated Statements of Income and Comprehensive Income over the estimated average life of the client. Refer to Note B for further details. The following table presents a recast of selected unaudited Consolidated Statements of Income and Comprehensive Income line items after giving effect to the adoption of ASU No. 2014-09: For the three months ended November 30, 2017 As Previously In millions, except per share amounts Reported Adjustments As Adjusted Service revenue $ 812.5 $ (23.5) $ 789.0 Operating expenses 248.7 (0.1) 248.6 Selling, general and administrative expenses 245.6 5.7 251.3 Total expenses 494.3 5.6 499.9 Operating income 332.2 (29.1) 303.1 Income taxes 116.9 (10.9) 106.0 Net income $ 217.0 $ (18.2) $ 198.8 Basic earnings per share $ 0.60 $ (0.05) $ 0.55 Diluted earnings per share $ 0.60 $ (0.05) $ 0.55 For the six months ended November 30, 2017 As Previously In millions, except per share amounts Reported Adjustments As Adjusted Service revenue $ 1,615.6 $ (47.4) $ 1,568.2 Operating expenses 480.8 (0.2) 480.6 Selling, general and administrative expenses 485.3 9.6 494.9 Total expenses 966.1 9.4 975.5 Operating income 677.2 (56.8) 620.4 Income taxes 236.2 (21.2) 215.0 Net income $ 444.8 $ (35.6) $ 409.2 Basic earnings per share $ 1.24 $ (0.10) $ 1.14 Diluted earnings per share $ 1.23 $ (0.10) $ 1.13 The following table presents a recast of selected unaudited Consolidated Balance Sheet line items after giving effect to the adoption of ASU No. 2014-09: May 31, 2018 As Previously In millions Reported Adjustments As Adjusted Assets Accounts receivable, net of allowance for doubtful accounts $ 531.4 $ (39.0) $ 492.4 Prepaid expenses and other current assets $ 75.8 $ 148.2 $ 224.0 Long-term deferred costs (1) $ 18.5 $ 342.5 $ 361.0 Liabilities and stockholders' equity Accounts payable $ 74.5 $ (0.8) $ 73.7 Deferred revenue $ 24.3 $ 10.3 $ 34.6 Deferred income taxes $ 48.8 $ 105.6 $ 154.4 Other long-term liabilities $ 84.8 $ 4.3 $ 89.1 Retained earnings $ 930.3 $ 332.3 $ 1,262.6 (1) Amounts were previously reported as a component of other long-term assets on the Consolidated Balance Sheets included in the Company’s fiscal 2018 Form 10-K. Long-term deferred costs are separately presented on the Consolidated Balance Sheets contained in this Form 10-Q. The following table presents a recast of selected unaudited Consolidated Statement of Cash Flow line items after giving effect to the adoption of ASU No. 2014-09: For the six months ended November 30, 2017 As Previously In millions Reported Adjustments As Adjusted Cash flows from operating activities Net income $ 444.8 $ (35.6) $ 409.2 Provision for deferred income taxes $ 68.4 $ (21.2) $ 47.2 Accounts receivable $ (56.5) $ 48.0 $ (8.5) Accounts payable and other current liabilities $ (34.3) $ (1.2) $ (35.5) Deferred costs $ — $ 10.6 $ 10.6 Net change in other long-term assets and liabilities $ 1.7 $ (0.6) $ 1.1 In June 2018, the Company also adopted the following ASUs, none of which had a material impact on its consolidated financial statements: · ASU No. 2017-05, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” · ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” · ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” · ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” · ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Recently issued accounting pronouncements: In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” ASU No. 2018-18 was issued to resolve the diversity in practice concerning the manner in which entities account for transactions based on their assessment of the economics of a collaborative arrangement. This guidance is effective for public entities for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning June 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning June 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 modified the disclosure requirements in Topic 820, “Fair Value Measurement,” based on the FASB Concepts Statement, “Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements,” including consideration of costs and benefits. This guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning June 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This guidance, as amended by subsequent ASUs on the topic, improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU No. 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company will adopt ASU No. 2016-02 in its fiscal year beginning June 1, 2019, and currently anticipates using the alternative transition method provided by the FASB in ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements.” Under this transition method, the Company will initially apply the new standard at adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings on June 1, 2019. The Company is gathering data and assessing the impact of the new lease accounting standard and the Company anticipates that the adoption of the new lease accounting standard will result in the Company recording additional assets and liabilities on its Consolidated Balance Sheets. The Company is still in the process of quantifying the impact the new standard will have on its Consolidated Balance Sheets. However, the Company does not anticipate that the new standard will have a material impact on its Consolidated Statements of Income and Comprehensive Income. In addition, the Company is in the process of completing its evaluation of available practical expedients and the impact of the new guidance on its business processes, systems, and controls. Other recent authoritative guidance issued by the FASB (including technical corrections to the ASC), the American Institute of Certified Public Accountants, and the Securities Exchange Commission (“SEC”) during the six months ended November 30, 2018 did not, or are not expected to, have a material effect on the Company’s consolidated financial statements. |
Service Revenue
Service Revenue | 6 Months Ended |
Nov. 30, 2018 | |
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 promised services are transferred to its clients, in an amount that reflects the consideration it expects to receive in exchange for such services. The Company’s service revenue is largely attributable to processing services where the fee is based on a fixed amount per processing period or a fixed amount per processing period plus a fee per employee or transaction processed. The Company’s contracts generally have a term of 30 days as they are cancellable at any time by either party with 30-days’ notice of termination. Sales and other applicable 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 Services as reported on 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. Revenue earned from delivery service for the distribution of certain client payroll checks and reports is included in Management Solutions revenue on 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. The following table, consistent with the Consolidated Statements of Income and Comprehensive Income, disaggregates service revenue by Management Solutions and PEO and Insurance Services: For the three months ended For the six months ended November 30, November 30, 2017 2017 In millions 2018 As Adjusted (1) 2018 As Adjusted (1) Management Solutions $ 685.4 $ 653.5 $ 1,373.1 $ 1,319.4 PEO and Insurance Services 155.2 135.5 313.2 248.8 Total service revenue $ 840.6 $ 789.0 $ 1,686.3 $ 1,568.2 (1) Amounts have been adjusted to reflect the adoption of ASC Topic 606. Management Solutions Revenue Management Solutions revenue is primarily derived from the Company’s payroll processing, payroll-related ancillary 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 customer simultaneously receives and controls the benefits from these services. PEO and Insurance Services Revenue PEO services are sold through the Company’s registered and licensed subsidiaries, Paychex Business Solutions, LLC and HROI, and offer businesses a combined package of services that includes payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative, among other services. 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 benefit offerings. PEO revenue is recognized over time as the services are performed and the customer simultaneously receives and controls the benefits from these services. PEO revenue is reported net of certain direct pass-through costs billed and incurred, which include payroll wages, payroll taxes, including state unemployment insurance, and certain health insurance benefit premiums, primarily costs related to our guaranteed cost benefit plans. For guaranteed cost benefit plans where the Company does not retain risk, it is acting as the agent for revenue recognition purposes and revenues are recorded net of the premiums paid to the insurance carrier. Approximately 60% of the client worksite employees that participate in the Company’s benefit plans are enrolled in guaranteed cost benefit plans where the Company does not retain risk. For workers’ compensation and certain benefit plans where the Company retains risk, it is acting as the principal for revenue recognition purposes and revenues and costs are recorded on a gross basis. Approximately 40% of the client worksite employees that participate in the Company’s health insurance offerings are enrolled in these benefit plans. Insurance services are sold through the Company’s licensed insurance agency, Paychex Insurance Agency, Inc., which provides insurance through a variety of carriers, while 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, and health and benefits coverage, including health, dental, vision, and life. Insurance services revenue is recognized over time as services are performed and the customer simultaneously receives and controls the benefits from these services. Contract Balances The timing of revenue recognition for Management Solutions and PEO and Insurance Services is consistent with the invoicing of clients as they both occur during the respective client payroll period for which the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing. Advance 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 performance obligations, which exceed one year, and subsequently recognizes these as future services are provided, over approximately three to four years . Changes in deferred revenue related to material right performance obligations were as follows: For the three months ended For the six months ended In millions November 30, 2018 November 30, 2018 Balance, beginning of period $ 45.7 $ 46.4 Deferral of revenue 7.1 13.2 Recognition of unearned revenue (6.8) (13.6) Balance, end of period $ 46.0 $ 46.0 Deferred revenue related to material right performance obligations is reported in the deferred revenue and other long-term liabilities line items on the Company’s Consolidated Balance Sheets contained in this Form 10-Q. The Company expects to recognize $12.8 million of deferred revenue related to material right performance obligations in the remainder of fiscal 2019, $18.5 million of such deferred revenue during our fiscal year ending May 31, 2020, and $14.7 million of such deferred revenue thereafter. 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 amortization period will be longer than one year. The Company determined that certain selling and commission costs meet the capitalization criteria under ASC Subtopic 340-40, “Other Assets and Deferred Costs: Contracts with Customers” (“ASC 340-40”). Prior to the adoption of ASU No. 2014-09 these costs were deferred up to an amount equal to the set-up fee revenue deferred and any costs in excess of that amount were recognized as expense when incurred. 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. The Company has determined that substantially all costs related to implementation activities are administrative in nature and meet the capitalization criteria under ASC 340-40. These capitalized costs to fulfill a contract principally relate to upfront direct costs that are expected to be recovered and enhance our ability to satisfy future performance obligations. The assets related to both costs to obtain and costs to fulfill contracts with clients are capitalized and amortized using an accelerated method to closely align with the pattern of client attrition over the estimated life of the client relationship. 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 operating and selling, general, and administrative expenses in the Company’s Consolidated Statements of Income and Comprehensive Income. The Company regularly reviews its deferred costs and did no t recognize an impairment loss during the six months ended November 30, 2018. Changes in deferred costs to obtain and fulfill contracts were as follows: For the three months ended November 30, 2018 Beginning Capitalization Ending In millions balance of costs Amortization balance Costs to obtain a contract $ 448.5 $ 37.9 $ (39.1) $ 447.3 Costs to fulfill a contact $ 65.7 $ 5.9 $ (5.8) $ 65.8 For the six months ended November 30, 2018 Beginning Capitalization Ending In millions balance of costs Amortization balance Costs to obtain a contract $ 455.0 $ 70.3 $ (78.0) $ 447.3 Costs to fulfill a contact $ 65.4 $ 11.9 $ (11.5) $ 65.8 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 6 Months Ended |
Nov. 30, 2018 | |
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 six months ended November 30, November 30, 2017 2017 In millions, except per share amounts 2018 As Adjusted (1) 2018 As Adjusted (1) Basic earnings per share: Net income $ 235.8 $ 198.8 $ 479.4 $ 409.2 Weighted-average common shares outstanding 359.1 359.1 359.1 359.0 Basic earnings per share $ 0.66 $ 0.55 $ 1.34 $ 1.14 Diluted earnings per share: Net income $ 235.8 $ 198.8 $ 479.4 $ 409.2 Weighted-average common shares outstanding 359.1 359.1 359.1 359.0 Dilutive effect of common share equivalents 2.4 2.3 2.4 2.4 Weighted-average common shares outstanding, assuming dilution 361.5 361.4 361.5 361.4 Diluted earnings per share $ 0.65 $ 0.55 $ 1.33 $ 1.13 Weighted-average anti-dilutive common share equivalents 0.6 1.2 0.5 1.1 (1) Amounts have been adjusted to reflect the adoption of ASC Topic 606. Weighted-average common share equivalents that have an anti-dilutive impact are excluded from the computation of diluted earnings per share. For the three months ended November 30, 2018 and November 30, 2017 , 0.1 million shares and 0.3 million shares, respectively, of the Company’s common stock were issued in connection with the exercise or vesting of stock-based awards. For the six months ended November 30, 2018 and November 30, 2017 , 0.6 million shares and 0.8 million shares, respectively, of the Company’s common stock were issued in connection with the exercise or vesting of stock-based awards. In addition, for the six months ended November 30, 2017 , 0.6 million shares of the Company’s common stock were issued in relation to an immaterial business acquisition completed in August 2017. In July 2016, the Company announced that its Board of Directors approved a program to repurchase up to $350.0 million of the Company’s common stock, with authorization expiring in May 2019 . The purpose of the program is to manage common stock dilution. No shares were repurchased during the three months ended November 30, 2018 and November 30, 2017. During the six months ended November 30, 2018 and November 30, 2017 , the Company repurchased 0.5 million shares for $32.8 million and 1.6 million shares for $ 94.1 million, respectively. All shares of common stock repurchased were retired. The Company declared a quarterly dividend to its shareholders of $0.56 per share and $0.50 per share for the three months ended November 30, 2018 and November 30, 2017 , respectively. For the six months ended November 30, 2018 and November 30, 2017 , the Company declared quarterly dividends to its shareholders of $1.12 per share and $1.00 per share, respectively. |
Business Combinations
Business Combinations | 6 Months Ended |
Nov. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Note D: Business Combinations On November 23, 2018 , the Company entered into a Stock Purchase Agreement (the “Agreement”) to acquire Oasis Outsourcing Group Holdings, L.P. (“Oasis”). Oasis is the nation’s largest privately owned PEO, serving more than 8,400 clients across all 50 states with its HR solutions, employee benefits, payroll administration, and risk management services. On December 20, 2018 , the Company closed its acquisition of Oasis for a purchase price of approximately $1.0 billion, net of approximately $200.0 million in cash acquired. The acquisition was financed through a combination of cash on hand of approximately $400.0 million and temporary borrowings under existing credit facilities of approximately $800.0 million. The Company is in the process of securing permanent financing for the acquisition. Upon closing, Oasis became a wholly owned subsidiary of the Company. The allocation of aggregate purchase price to assets acquired and liabilities assumed is expected to largely consist of intangibles and goodwill. Goodwill in excess of the existing tax basis is not expected to be deductible for tax purposes and is attributable to the future economic benefits we expect to achieve and expected synergies to be realized when combining the operations of this acquisition into our existing operations. The Company is in the process of completing its accounting and valuations of Oasis and accordingly, more detailed disclosures will be provided in future filings. Supplemental pro forma information has not been provided as the Company has deemed it impracticable given the timing of the closing of the transaction and availability of Oasis financial information. Effective February 28, 2018 , the Company acquired Lessor Group (“Lessor”). Upon closing, Lessor became a wholly owned subsidiary of the Company. Lessor is a market-leading provider of payroll and HCM software solutions headquartered in Denmark and serving clients in Northern Europe. The purchase price was $162.5 million, net of $13.4 million in cash acquired. Goodwill in the amount of $11 1.5 million was recorded as a result of the acquisition, which is not tax-deductible. The purchase accounting is provisional and subject to change, pending completion of a final valuation of Lessor. However, further changes to goodwill resulting from the acquisition are not anticipated to be material to the Company’s Consolidated Balance Sheets. Effective August 18, 2017 , the Company acquired HROI and all of its operating subsidiaries. HROI is a national PEO that provides HR solutions to small- and medium-sized businesses in more than 35 states. The acquisition expanded the Company’s presence in the PEO industry. The purchase price was $75.4 million and was comprised of $42.2 million of cash plus $33.2 million issued in the form of Paychex common stock. Goodwill in the amount of $51.1 million was recorded as a result of the acquisition, which is not tax-deductible. The financial results of both Lessor and HROI are included in the Company’s consolidated financial statements from the respective dates of acquisition. The Company concluded that these acquisitions were not material to its results of operations and financial position. Therefore, pro forma financial information has been excluded. |
Investment Income, Net
Investment Income, Net | 6 Months Ended |
Nov. 30, 2018 | |
Investment Income, Net [Abstract] | |
Investment Income, Net | Note E: Investment Income, Net Investment income, net, consisted of the following items: For the three months ended For the six months ended November 30, November 30, In millions 2018 2017 2018 2017 Interest income on corporate funds $ 2.8 $ 2.7 $ 6.0 $ 5.6 Interest expense (0.8) (1.3) (1.7) (2.1) Net gain from equity-method investments 0.1 0.3 0.1 0.3 Investment income, net $ 2.1 $ 1.7 $ 4.4 $ 3.8 |
Funds Held for Clients and Corp
Funds Held for Clients and Corporate Investments | 6 Months Ended |
Nov. 30, 2018 | |
Funds Held for Clients and Corporate Investments [Abstract] | |
Funds Held for Clients and Corporate Investments | Note F: Funds Held for Clients and Corporate Investments Funds held for clients and corporate investments are as follows: November 30, 2018 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other cash equivalents $ 957.2 $ — $ — $ 957.2 Available-for-sale securities: Corporate bonds 398.0 — (10.7) 387.3 General obligation municipal bonds 1,008.8 0.5 (11.7) 997.6 Pre-refunded municipal bonds (1) 49.8 0.1 (0.2) 49.7 Revenue municipal bonds 635.2 0.3 (8.3) 627.2 U.S. government agency securities 474.4 — (15.3) 459.1 Variable rate demand notes 433.4 — — 433.4 Total available-for-sale securities 2,999.6 0.9 (46.2) 2,954.3 Other 18.1 1.4 (0.3) 19.2 Total funds held for clients and corporate investments $ 3,974.9 $ 2.3 $ (46.5) $ 3,930.7 May 31, 2018 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other cash equivalents $ 1,942.3 $ — $ — $ 1,942.3 Available-for-sale securities: Corporate bonds 328.6 0.1 (7.3) 321.4 General obligation municipal bonds 1,231.6 1.3 (11.2) 1,221.7 Pre-refunded municipal bonds (1) 50.9 0.1 (0.1) 50.9 Revenue municipal bonds 813.5 0.9 (8.0) 806.4 U.S. government agency securities 410.2 — (14.1) 396.1 Variable rate demand notes 308.3 — — 308.3 Total available-for-sale securities 3,143.1 2.4 (40.7) 3,104.8 Other 16.1 2.1 — 18.2 Total funds held for clients and corporate investments $ 5,101.5 $ 4.5 $ (40.7) $ 5,065.3 (1) Pre-refunded municipal bonds are secured by an escrow fund of U.S. government obligations. Included in money market securities and other cash equivalents as of November 30, 2018 and May 31, 2018 were bank demand deposit accounts, time deposits, commercial paper, and money market funds. Classification of investments on the Consolidated Balance Sheets is as follows: November 30, May 31, In millions 2018 2018 Funds held for clients $ 3,672.3 $ 4,703.8 Corporate investments 248.4 66.0 Long-term corporate investments 10.0 295.5 Total funds held for clients and corporate investments $ 3,930.7 $ 5,065.3 The Company’s available-for-sale securities reflected net unrealized losses of $45.3 million and $ 38.3 million as of November 30, 2018 and May 31, 2018, respectively . Included in the net unrealized loss totals as of November 30, 2018 and May 31, 2018 were 1,090 and 970 available-for-sale securities in an unrealized loss position, respectively. The available-for-sale securities in an unrealized loss position were as follows: November 30, 2018 Securities in an unrealized loss position for less than twelve months Securities in an unrealized loss position for more than twelve months Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Corporate bonds $ (4.6) $ 230.9 $ (6.1) $ 144.8 $ (10.7) $ 375.7 General obligation municipal bonds (2.5) 417.6 (9.2) 447.5 (11.7) 865.1 Pre-refunded municipal bonds (0.1) 22.1 — 5.6 (0.1) 27.7 Revenue municipal bonds (1.3) 213.9 (7.0) 308.1 (8.3) 522.0 U.S. government agency securities (1.7) 111.2 (13.7) 347.9 (15.4) 459.1 Total $ (10.2) $ 995.7 $ (36.0) $ 1,253.9 $ (46.2) $ 2,249.6 May 31, 2018 Securities in an unrealized loss position for less than twelve months Securities in an unrealized loss position for more than twelve months Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Corporate bonds $ (6.0) $ 271.5 $ (1.3) $ 34.6 $ (7.3) $ 306.1 General obligation municipal bonds (8.7) 856.4 (2.5) 68.9 (11.2) 925.3 Pre-refunded municipal bonds (0.1) 18.5 — 0.5 (0.1) 19.0 Revenue municipal bonds (6.3) 540.9 (1.7) 50.9 (8.0) 591.8 U.S. government agency securities (6.4) 219.7 (7.7) 176.4 (14.1) 396.1 Total $ (27.5) $ 1,907.0 $ (13.2) $ 331.3 $ (40.7) $ 2,238.3 The Company regularly reviews its investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. The Company believes that the investments held as of November 30, 2018 that had gross unrealized losses of $46.2 million were not other-than-temporarily impaired. The Company believes that 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. A majority of the securities in an unrealized loss position as of November 30, 2018 and May 31, 2018 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 other-than-temporarily impaired 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 sales of securities are determined by specific identification of the amortized cost basis of each security. On the Consolidated Statements of Income and Comprehensive Income, realized gains and losses from funds held for clients are included in interest on funds held for clients and realized gains and losses from corporate investments are included in investment income, net. Realized gains were insignificant for the three and six months ended November 30, 2018 and November 30, 2017 . Realized losses were $0.4 million for both the three and six months ended November 30, 2018 . There were no realized losses for the three and six months ended November 30, 2017 . The amortized cost and fair value of available-for-sale securities that had stated maturities as of November 30, 2018 are shown below by contractual maturity. Expected maturities can differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. November 30, 2018 Amortized Fair In millions cost value Maturity date: Due in one year or less $ 193.3 $ 192.9 Due after one year through three years 825.2 818.0 Due after three years through five years 1,035.7 1,014.7 Due after five years 945.4 928.7 Total $ 2,999.6 $ 2,954.3 Variable rate demand notes are primarily categorized as due after five years in the table above as the contractual maturities on these securities are typically 20 to 3 0 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 | 6 Months Ended |
Nov. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note G: 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, accounts receivable, net of allowance for doubtful accounts, 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 available-for-sale 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: November 30, 2018 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: Cash equivalents: Commercial paper $ 380.0 $ — $ 380.0 $ — Time deposits 50.0 — 50.0 — Money market securities 12.3 12.3 — — Total cash equivalents $ 442.3 $ 12.3 $ 430.0 $ — Available-for-sale securities: Corporate bonds $ 387.3 $ — $ 387.3 $ — General obligation municipal bonds 997.6 — 997.6 — Pre-refunded municipal bonds 49.7 — 49.7 — Revenue municipal bonds 627.2 — 627.2 — U.S. government agency securities 459.1 — 459.1 — Variable rate demand notes 433.4 — 433.4 — Total available-for-sale securities $ 2,954.3 $ — $ 2,954.3 $ — Other $ 19.2 $ 19.2 $ — $ — Liabilities: Other long-term liabilities $ 19.2 $ 19.2 $ — $ — May 31, 2018 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: Cash equivalents: Commercial paper $ 655.0 $ — $ 655.0 $ — Time deposits 200.0 — 200.0 — Money market securities 7.1 7.1 — — Total cash equivalents $ 862.1 $ 7.1 $ 855.0 $ — Available-for-sale securities: Corporate bonds $ 321.4 $ — $ 321.4 $ — General obligation municipal bonds 1,221.7 — 1,221.7 — Pre-refunded municipal bonds 50.9 — 50.9 — Revenue municipal bonds 806.4 — 806.4 — U.S. government agency securities 396.1 — 396.1 — Variable rate demand notes 308.3 — 308.3 — Total available-for-sale securities $ 3,104.8 $ — $ 3,104.8 $ — Other $ 18.2 $ 18.2 $ — $ — Liabilities: Other long-term liabilities $ 18.2 $ 18.2 $ — $ — 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 valued based on quoted market prices in active markets. Cash equivalents also include commercial paper and time deposits, which are considered Level 2 investments as they are valued based on similar, but not identical, instruments in active markets. Available-for-sale securities, including municipal bonds, variable rate demand notes, corporate bonds, and U.S. government agency securities, 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 available-for-sale 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 valued based on quoted market prices in active markets. 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. |
Accounts Receivable, Net of All
Accounts Receivable, Net of Allowance for Doubtful Accounts | 6 Months Ended |
Nov. 30, 2018 | |
Accounts Receivable, Net of Allowance for Doubtful Accounts [Abstract] | |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Note H: Accounts Receivable, Net of Allowance for Doubtful Accounts The components of accounts receivable, net of allowance for doubtful accounts, consisted of the following: May 31, November 30, 2018 In millions 2018 As Adjusted (1) PEO receivables (2) $ 167.9 $ 140.1 Purchased receivables (3) 323.3 267.0 Other trade receivables (4) 77.9 92.3 Total accounts receivable, gross 569.1 499.4 Less: Allowance for doubtful accounts 6.5 7.0 Accounts receivable, net of allowance for doubtful accounts $ 562.6 $ 492.4 (1) Amounts have been adjusted to reflect the adoption of ASC Topic 606 . (2) PEO receivables are primarily client wages and related tax withholdings since the last payroll processed. Balances will vary based on the timing of the last payroll processed and the end of the reporting period. (3) Purchased receivables relate to payroll funding arrangements with clients in the temporary staffing industry. (4) Other trade receivables primarily relate to other ongoing services provided to our clients and can vary based on the timing of these services and the end of the reporting period. No single client had a material impact on total accounts receivable, service revenue, or results of operations. |
Property and Equipment, Net of
Property and Equipment, Net of Accumulated Depreciation | 6 Months Ended |
Nov. 30, 2018 | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Property and Equipment, Net of Accumulated Depreciation | Note I: Property and Equipment, Net of Accumulated Depreciation The components of property and equipment, at cost, consisted of the following: November 30, May 31, In millions 2018 2018 Land and improvements $ 10.7 $ 10.6 Buildings and improvements 162.2 126.4 Data processing equipment 215.3 211.3 Software (1) 580.0 545.5 Furniture, fixtures, and equipment 115.6 114.5 Leasehold improvements 107.3 111.4 Construction in progress (1) 30.3 63.0 Total property and equipment, gross 1,221.4 1,182.7 Less: Accumulated depreciation 827.4 789.2 Property and equipment, net of accumulated depreciation $ 394.0 $ 393.5 (1) Software includes both purchased software and costs capitalized related to internally developed software placed in service. Capitalized costs related to internally developed software that has not yet been placed in service is included in construction in progress. Depreciation expense was $30.2 million and I can’t million for the three and six months ended November 30, 2018 , respectively, compared to $28.4 million and $56.5 million for the three and six months ended November 30, 2017 , respectively. The Company is in the process of completing its plan for a new multi-building Paychex campus, including the renovation of over 300,000 square feet based in Rochester, NY. The Company completed the purchase of five buildings during the three months ended November 30, 2017 for a combined cost of approximately $34.7 million and placed approximately $16.0 million in escrow for building renovations, which are nearly complete. All costs previously included in the Company’s construction in progress balance related to the multi-building campus have been capitalized as of November 30, 2018. As of May 31, 2018 , $32.0 million was included in the Company’s construction in progress balance. The Company had a remaining balance in escrow of $1.5 million and $14.2 million as of November 30, 2018 and May 31, 2018, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net of Accumulated Amortization | 6 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets, Net of Accumulated Amortization [Abstract] | |
Goodwill and Intangible Assets, Net of Accumulated Amortization | Note J: Goodwill and Intangible Assets, Net of Accumulated Amortization The Company had goodwill balances on its Consolidated Balance Sheets of $810.6 million as of November 30, 2018 and $814.0 million as of May 31, 2018 . Changes in goodwill balances are the result of foreign currency exchange rate fluctuations. The Company has certain intangible assets on its Consolidated Balance Sheets. The components of intangible assets, at cost, consisted of the following: November 30, May 31, In millions 2018 2018 Client lists $ 305.7 $ 308.5 Other intangible assets 12.8 13.3 Total intangible assets, gross 318.5 321.8 Less: Accumulated amortization 190.5 180.4 Intangible assets, net of accumulated amortization $ 128.0 $ 141.4 Amortization expense relating to intangible assets was $6.6 million and $13.1 million for the three and six months ended November 30, 2018 , respectively, compared to $5.3 million and $9.2 million for the three and six months ended November 30, 2017 , respectively. As of November 30, 2018 , the estimated amortization expense relating to intangible asset balances for the full year fiscal 2019 and the following four fiscal years is as follows: In millions Estimated amortization Year ending May 31, expense 2019 $ 25.9 2020 22.6 2021 19.5 2022 16.6 2023 14.2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 6 Months Ended |
Nov. 30, 2018 | |
Accumulated Other Comprehensive (Loss)/Income [Abstract] | |
Accumulated Other Comprehensive (Loss)/ Income | Note K: Accumulated Other Comprehensive (Loss)/Income The change in unrealized gains and losses, net of applicable taxes, related to investments in available-for-sale securities and foreign currency translation adjustments are the primary components reported in accumulated other comprehensive loss on the Company’s Consolidated Balance Sheets. The changes in accumulated other comprehensive (loss)/income are as follows: For the three months ended For the six months ended November 30, November 30, In millions 2018 2017 2018 2017 Beginning balance $ (35.8) $ 24.4 $ (36.2) $ 20.0 Other comprehensive (loss)/income: Unrealized losses on available-for-sale securities, net of tax (7.2) (33.6) (5.2) (29.3) Foreign currency translation adjustment (4.4) — (6.0) 0.1 Total other comprehensive loss, net of tax (11.6) (33.6) (11.2) (29.2) Ending balance $ (47.4) $ (9.2) $ (47.4) $ (9.2) Total tax benefit included in other comprehensive loss $ (1.8) $ (19.3) $ (2.3) $ (16.8) Reclassification adjustments out of accumulated other comprehensive (loss)/income for realized gains and losses on the sale of available-for-sale securities were insignificant for the three and six months ended November 30, 2018 and November 30, 2017 . Those reclassification adjustments are reflected in interest on funds held for clients on the Consolidated Statements of Income and Comprehensive Income. |
Short-term Financing
Short-term Financing | 6 Months Ended |
Nov. 30, 2018 | |
Short-term Financing [Abstract] | |
Short-term Financing | Note L: Short-term Financing The Company maintains credit facilities and letters of credit as part of its normal and recurring business operations. Credit Facilities: The Company maintains three committed, unsecured credit facilities, as follows: Bank Borrower (1) Date Entered Expiration Date Maximum Amount Available Purpose JP Morgan Chase Bank, N.A. (2) Paychex of New York, LLC August 5, 2015 August 5, 2020 $1 Billion To meet short-term funding requirements. JP Morgan Chase Bank, N.A. (2) Paychex of New York, LLC August 17, 2017 August 17, 2022 $500 Million To meet short-term funding requirements. PNC Bank, National Association (“PNC”) Paychex Advance, LLC March 17, 2016 March 17, 2020 $150 Million To finance working capital needs and general corporate purposes. (1) Borrower is a wholly owned subsidiary of the Company. (2) JP Morgan Chase Bank, N.A. (“JPM”) acts as the administrative agent for this syndicated credit facility. For all credit facilities, obligations under any facility are guaranteed by the Company and certain of its subsidiaries and will bear interest at competitive rates based on options provided to the borrower. Upon the expiration date, any borrowings outstanding will mature and be payable on such date . JPM $1 Billion Credit Facility: There were no borrowings outstanding under this credit facility as of November 30, 2018 or May 31, 2018 . Details of borrowings under this credit facility d uring the three and six months ended November 30, 2018 and November 30, 2017 are as follows: For the three months ended For the six months ended November 30, November 30, $ in millions 2018 2017 2018 2017 Number of days borrowed 4 6 10 19 Maximum amount borrowed $ 483.0 $ 700.0 $ 483.0 $ 700.0 Weighted-average amount borrowed $ 389.8 $ 445.8 $ 285.7 $ 331.6 Weighted-average interest rate 5.12 % 4.25 % 5.06 % 4.24 % The Company typically borrows on an overnight basis and only borrowed on an overnight basis during the three and six months ended November 30, 2018 and during the three months ended November 30, 2017. In addition to overnight borrowings, during the six months ended November 30, 2017 , the Company borrowed $100.0 million for a three -day period at a weighted-average interest rate of 4.25% . Subsequent to November 30, 2018 , the Company borrowed $400.0 million due on February 20, 2019 at a LIBOR-based interest rate of 3.50% as it secures permanent financing for the acquisition of Oasis. JPM $500 Million Credit Facility: There were no borrowings outstanding under this credit facility as of November 30, 2018 or May 31, 2018 . Details of borrowings under this credit facility during the three and six months ended November 30, 2018 and November 30, 2017 are as follows: For the three months ended For the six months ended November 30, November 30, $ in millions 2018 2017 2018 2017 Number of days borrowed 3 20 7 20 Maximum amount borrowed $ 135.5 $ 400.0 $ 223.0 $ 400.0 Weighted-average amount borrowed $ 83.0 $ 215.8 $ 111.8 $ 215.8 Weighted-average interest rate 5.25 % 2.84 % 5.07 % 2.84 % The Company typically borrows on an overnight basis and only borrowed on an overnight basis during the three and six months ended November 30, 2018 . In addition to overnight borrowings, during the three and six months ended November 30, 2017 , the Company borrowed $300.0 million for seven days and $75.0 million for eleven days at weighted-average LIBOR-based interest rates of 2.13% and 2.19% , respectively. Subsequent to November 30, 2018, the Company borrowed $400.0 million due on February 20, 2019 at a LIBOR-based interest rate of 3.50% as it secures permanent financing for the acquisition of Oasis. PNC $150 Million Credit Facility: As of November 30, 2018 , the Company had $57.3 million outstanding under this credit facility, which remains outstanding as of the date of this report. There were no borrowings outstanding under this credit facility as of May 31, 2018 . Details of borrowings under this credit facility during the three and six months ended November 30, 2018 and November 30, 2017 are as follows: For the three months ended For the six months ended November 30, November 30, $ in millions 2018 2017 2018 2017 Number of days borrowed 91 91 179 179 Maximum amount borrowed $ 57.7 $ 58.6 $ 57.7 $ 58.6 Weighted-average amount borrowed $ 57.3 $ 57.8 $ 56.6 $ 56.8 Weighted-average interest rate 2.68 % 1.78 % 2.61 % 1.73 % All of the Company’s 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 November 30, 2018 . Certain lenders under these credit facilities, and their respective affiliates, have performed, and may in the future perform for the Company, various commercial banking, investment banking, underwriting, and other financial advisory services, for which they have received, and will continue to receive in the future, customary fees and expenses. Letters of credit: The Company had irrevocable standby letters of credit outstanding totaling $67.8 million and $56.8 million as of November 30, 2018 and May 31, 2018 , respectively, required to secure commitments for certain insurance policies. The letters of credit expire at various dates between April 2019 and July 2020 . No amounts were outstanding on these letters of credit as of or during the six months ended November 30, 2018 and November 30, 2017 , or as of May 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note M: Commitments and Contingencies Other commitments: The Company enters into various purchase commitments with vendors in the ordinary course of business. The Company had outstanding commitments to purchase approximately $4.4 million and $6.7 million of capital assets as of November 30, 2018 and May 31, 2018 , 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. In addition, the Company has 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 employee benefit plans. The estimated loss exposure under these insurance arrangements is recorded in other current liabilities on the Company’s Consolidated Balance Sheets. Historically, the amounts accrued have not been material and were not material as of November 30, 2018 . The Company also maintains insurance coverage 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; and 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, patent, breach of fiduciary duty, employment-related claims, tax claims, 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 effect is recorded. |
Income Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note N: Income Taxes The Company’s effective income tax rate was 23.8% and 34.8% for the three months ended November 30, 2018 and November 30, 2017 , respectively, and 24.1% and 34.4% for the six months ended November 30, 2018 and November 30, 2017 , respectively. The decrease in the effective income tax rate for the three and six months ended November 30, 2018 was primarily due to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017. The decrease in the effective income tax rate for the six months ended November 30, 2018 was partially impacted by certain discrete items related to the revaluation of deferred taxes. In addition, the effective income tax rates in these periods were impacted by the recognition of a net discrete tax benefit related to employee stock-based compensation payments. The net discrete tax benefit impacted the three months ended November 30, 2018 by less than $0.01 per diluted share and the three months ended November 30, 2017 by $0.01 per diluted share. The net discrete tax benefit impacted the six months ended November 30, 2018 and November 30, 2017 by $0.01 per diluted share and $0.02 per diluted share, respectively. The Tax Act made broad and complex changes to U.S. Federal corporate income taxation as outlined in the Company’s Form 10-K for fiscal 2018. In December 2017, the staff of the SEC issued guidance under Staff Accounting Bulletin No. 118 (“SAB No. 118”), “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” allowing taxpayers to record provisional amounts for reasonable estimates when they do not have the necessary information available, prepared or analyzed in reasonable detail to complete their accounting for certain income tax effects of the Tax Act. The SEC also issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the related tax impacts. As of November 30, 2018, the Company’s accounting for the impact of the Tax Act is complete. |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Significant Accounting Policies (Policy) | 6 Months Ended |
Nov. 30, 2018 | |
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 provider of integrated human capital management (“HCM”) solutions for payroll, benefits, human resource (“HR”), and insurance services for small- to medium-sized businesses in the United States (“U.S.”). The Company also has operations in Europe. Paychex, a Delaware corporation formed in 1979, reports as one segment. Substantially all of the Company’s revenue is generated within the U.S. The Company also generates revenue within Europe, which represented approximately one percent of the Company’s total revenue for both the three and six months ended November 30, 2018 and was less than one percent of the Company's total revenue for both the three and six months ended November 30, 2017 . Long-lived assets in Europe were approximately 10% of total long-lived assets of the Company as of November 30, 2018 and May 31, 2018 . |
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 (“Form 10-Q”) and Article 10 of Regulation S-X. Accordingly, they do not include all of 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. In the opinion of management, the information furnished herein reflects all adjustments (consisting of items of a normal recurring nature), which are 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, 2018 (“fiscal 2018 ”). Operating results and cash flows for the six months ended November 30, 2018 are not necessarily indicative of the results that may be expected for other interim periods or for the fiscal year ending May 31, 2019 (“fiscal 2019 ”). Effective June 1, 2018, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” as discussed in “Recently adopted accounting pronouncements.” All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standard, as indicated by the “As Adjusted” footnote. |
Reclassifications | Reclassifications: Certain prior period amounts have been reclassified to conform to the current period presentation in connection with the adoption of ASU No. 2014-09 and had no material effect on reported consolidated earnings. |
PEO Insurance Reserves | PEO insurance reserves: As part of the professional employer organization (“PEO”) service, the Company offers workers' compensation insurance and health insurance to client companies for the benefit of client employees. For workers' compensation insurance, reserves are established to provide for the estimated costs of paying claims up to per occurrence liability limits. The Company’s maximum individual claims liability, excluding HR Outsourcing Holdings, Inc. (“HROI”), was $1.0 million and $1.3 million under its fiscal 2019 and fiscal 2018 workers' compensation insurance policies, respectively. HROI’s maximum individual claims liability was $0.5 million and $0.8 million under its workers’ compensation insurance policies for the annual periods ended September 30, 2018 and ending September 30, 2019, respectively. Under the minimum premium insurance plan offering within the PEO, the Company's health benefits insurance reserves are established to provide for the payment of claims liability charges in accordance with its service contract with the insurance carrier. The Company's maximum individual claims liability, excluding HROI, was $0.3 million under both its calendar 2018 and 2017 minimum premium insurance plan policies. HROI’s maximum individual claims liability was $0.3 million under its minimum premium insurance plan policies for the annual periods ended June 30, 2018 and ending June 30, 2019 . In addition, the Company also provides self-insured dental and vision plans. Estimating the ultimate cost of future claims is an uncertain and complex process based upon historical loss experience and 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 insurance reserves are reflected in the results of operations for the period in which such adjustments are 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 directors consisting of stock options, restricted stock awards, restricted stock units, performance shares, performance-based restricted stock, and performance-based stock options. The Company accounts for all stock-based awards to employees and directors 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 $11.9 million and $22.8 million for the three and six months ended November 30, 2018 , respectively, as compared with $10.4 million and $19.1 million for the three and six months ended November 30, 2017 . 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 fiscal 2018 Form 10-K. |
Recently Adopted and Issued Accounting Pronouncements | Recently adopted accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This guidance, as amended by subsequent ASUs on the topic, outlines a single comprehensive model for determining revenue recognition for contracts with customers, and supersedes guidance on revenue recognition in ASC Topic 605, “Revenue Recognition.” The Company adopted the new standard on June 1, 2018, utilizing the full retrospective method, which required the Company to recast each prior reporting period presented and included a cumulative adjustment to increase stockholder’s equity by $262.9 million as of June 1, 2016. The Company has updated its control framework for new internal controls and made changes to existing controls related to the new standard. Impact on Previously Reported Results The provisions of ASU No. 2014-09 do not materially impact the timing or the amount of revenue the Company recognizes on an annual basis in its Consolidated Statements of Income and Comprehensive Income. However, it does have an impact on the timing and amount of revenue the Company recognizes on a quarterly basis due to changes in the way it accounts for certain revenues where performance obligations are satisfied at a point in time. The provisions of the new standard have a material impact on the Company’s Consolidated Balance Sheets. The primary impact of adopting the new standard is on the Company’s treatment of certain costs to obtain and fulfill contracts. In relation to those items, the new standard resulted in the Company deferring additional costs on its Consolidated Balance Sheets and amortizing them to the Consolidated Statements of Income and Comprehensive Income over the estimated average life of the client. Refer to Note B for further details. The following table presents a recast of selected unaudited Consolidated Statements of Income and Comprehensive Income line items after giving effect to the adoption of ASU No. 2014-09: For the three months ended November 30, 2017 As Previously In millions, except per share amounts Reported Adjustments As Adjusted Service revenue $ 812.5 $ (23.5) $ 789.0 Operating expenses 248.7 (0.1) 248.6 Selling, general and administrative expenses 245.6 5.7 251.3 Total expenses 494.3 5.6 499.9 Operating income 332.2 (29.1) 303.1 Income taxes 116.9 (10.9) 106.0 Net income $ 217.0 $ (18.2) $ 198.8 Basic earnings per share $ 0.60 $ (0.05) $ 0.55 Diluted earnings per share $ 0.60 $ (0.05) $ 0.55 For the six months ended November 30, 2017 As Previously In millions, except per share amounts Reported Adjustments As Adjusted Service revenue $ 1,615.6 $ (47.4) $ 1,568.2 Operating expenses 480.8 (0.2) 480.6 Selling, general and administrative expenses 485.3 9.6 494.9 Total expenses 966.1 9.4 975.5 Operating income 677.2 (56.8) 620.4 Income taxes 236.2 (21.2) 215.0 Net income $ 444.8 $ (35.6) $ 409.2 Basic earnings per share $ 1.24 $ (0.10) $ 1.14 Diluted earnings per share $ 1.23 $ (0.10) $ 1.13 The following table presents a recast of selected unaudited Consolidated Balance Sheet line items after giving effect to the adoption of ASU No. 2014-09: May 31, 2018 As Previously In millions Reported Adjustments As Adjusted Assets Accounts receivable, net of allowance for doubtful accounts $ 531.4 $ (39.0) $ 492.4 Prepaid expenses and other current assets $ 75.8 $ 148.2 $ 224.0 Long-term deferred costs (1) $ 18.5 $ 342.5 $ 361.0 Liabilities and stockholders' equity Accounts payable $ 74.5 $ (0.8) $ 73.7 Deferred revenue $ 24.3 $ 10.3 $ 34.6 Deferred income taxes $ 48.8 $ 105.6 $ 154.4 Other long-term liabilities $ 84.8 $ 4.3 $ 89.1 Retained earnings $ 930.3 $ 332.3 $ 1,262.6 (1) Amounts were previously reported as a component of other long-term assets on the Consolidated Balance Sheets included in the Company’s fiscal 2018 Form 10-K. Long-term deferred costs are separately presented on the Consolidated Balance Sheets contained in this Form 10-Q. The following table presents a recast of selected unaudited Consolidated Statement of Cash Flow line items after giving effect to the adoption of ASU No. 2014-09: For the six months ended November 30, 2017 As Previously In millions Reported Adjustments As Adjusted Cash flows from operating activities Net income $ 444.8 $ (35.6) $ 409.2 Provision for deferred income taxes $ 68.4 $ (21.2) $ 47.2 Accounts receivable $ (56.5) $ 48.0 $ (8.5) Accounts payable and other current liabilities $ (34.3) $ (1.2) $ (35.5) Deferred costs $ — $ 10.6 $ 10.6 Net change in other long-term assets and liabilities $ 1.7 $ (0.6) $ 1.1 In June 2018, the Company also adopted the following ASUs, none of which had a material impact on its consolidated financial statements: · ASU No. 2017-05, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” · ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” · ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” · ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” · ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Recently issued accounting pronouncements: In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” ASU No. 2018-18 was issued to resolve the diversity in practice concerning the manner in which entities account for transactions based on their assessment of the economics of a collaborative arrangement. This guidance is effective for public entities for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning June 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning June 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 modified the disclosure requirements in Topic 820, “Fair Value Measurement,” based on the FASB Concepts Statement, “Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements,” including consideration of costs and benefits. This guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. This guidance is applicable to the Company’s fiscal year beginning June 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This guidance, as amended by subsequent ASUs on the topic, improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU No. 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company will adopt ASU No. 2016-02 in its fiscal year beginning June 1, 2019, and currently anticipates using the alternative transition method provided by the FASB in ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements.” Under this transition method, the Company will initially apply the new standard at adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings on June 1, 2019. The Company is gathering data and assessing the impact of the new lease accounting standard and the Company anticipates that the adoption of the new lease accounting standard will result in the Company recording additional assets and liabilities on its Consolidated Balance Sheets. The Company is still in the process of quantifying the impact the new standard will have on its Consolidated Balance Sheets. However, the Company does not anticipate that the new standard will have a material impact on its Consolidated Statements of Income and Comprehensive Income. In addition, the Company is in the process of completing its evaluation of available practical expedients and the impact of the new guidance on its business processes, systems, and controls. Other recent authoritative guidance issued by the FASB (including technical corrections to the ASC), the American Institute of Certified Public Accountants, and the Securities Exchange Commission (“SEC”) during the six months ended November 30, 2018 did not, or are not expected to, have a material effect on the Company’s consolidated financial statements. |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Significant Accounting Policies (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Description of Business, Basis of Presentation, and Significant Accounting Policies [Abstract] | |
Schedule of Recast of Selected Unaudited Consolidated Statements | The following table presents a recast of selected unaudited Consolidated Statements of Income and Comprehensive Income line items after giving effect to the adoption of ASU No. 2014-09: For the three months ended November 30, 2017 As Previously In millions, except per share amounts Reported Adjustments As Adjusted Service revenue $ 812.5 $ (23.5) $ 789.0 Operating expenses 248.7 (0.1) 248.6 Selling, general and administrative expenses 245.6 5.7 251.3 Total expenses 494.3 5.6 499.9 Operating income 332.2 (29.1) 303.1 Income taxes 116.9 (10.9) 106.0 Net income $ 217.0 $ (18.2) $ 198.8 Basic earnings per share $ 0.60 $ (0.05) $ 0.55 Diluted earnings per share $ 0.60 $ (0.05) $ 0.55 For the six months ended November 30, 2017 As Previously In millions, except per share amounts Reported Adjustments As Adjusted Service revenue $ 1,615.6 $ (47.4) $ 1,568.2 Operating expenses 480.8 (0.2) 480.6 Selling, general and administrative expenses 485.3 9.6 494.9 Total expenses 966.1 9.4 975.5 Operating income 677.2 (56.8) 620.4 Income taxes 236.2 (21.2) 215.0 Net income $ 444.8 $ (35.6) $ 409.2 Basic earnings per share $ 1.24 $ (0.10) $ 1.14 Diluted earnings per share $ 1.23 $ (0.10) $ 1.13 The following table presents a recast of selected unaudited Consolidated Balance Sheet line items after giving effect to the adoption of ASU No. 2014-09: May 31, 2018 As Previously In millions Reported Adjustments As Adjusted Assets Accounts receivable, net of allowance for doubtful accounts $ 531.4 $ (39.0) $ 492.4 Prepaid expenses and other current assets $ 75.8 $ 148.2 $ 224.0 Long-term deferred costs (1) $ 18.5 $ 342.5 $ 361.0 Liabilities and stockholders' equity Accounts payable $ 74.5 $ (0.8) $ 73.7 Deferred revenue $ 24.3 $ 10.3 $ 34.6 Deferred income taxes $ 48.8 $ 105.6 $ 154.4 Other long-term liabilities $ 84.8 $ 4.3 $ 89.1 Retained earnings $ 930.3 $ 332.3 $ 1,262.6 (1) Amounts were previously reported as a component of other long-term assets on the Consolidated Balance Sheets included in the Company’s fiscal 2018 Form 10-K. Long-term deferred costs are separately presented on the Consolidated Balance Sheets contained in this Form 10-Q. The following table presents a recast of selected unaudited Consolidated Statement of Cash Flow line items after giving effect to the adoption of ASU No. 2014-09: For the six months ended November 30, 2017 As Previously In millions Reported Adjustments As Adjusted Cash flows from operating activities Net income $ 444.8 $ (35.6) $ 409.2 Provision for deferred income taxes $ 68.4 $ (21.2) $ 47.2 Accounts receivable $ (56.5) $ 48.0 $ (8.5) Accounts payable and other current liabilities $ (34.3) $ (1.2) $ (35.5) Deferred costs $ — $ 10.6 $ 10.6 Net change in other long-term assets and liabilities $ 1.7 $ (0.6) $ 1.1 |
Service Revenue (Tables)
Service Revenue (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Service Revenue [Abstract] | |
Summary of Disaggregates Revenue by Services | For the three months ended For the six months ended November 30, November 30, 2017 2017 In millions 2018 As Adjusted (1) 2018 As Adjusted (1) Management Solutions $ 685.4 $ 653.5 $ 1,373.1 $ 1,319.4 PEO and Insurance Services 155.2 135.5 313.2 248.8 Total service revenue $ 840.6 $ 789.0 $ 1,686.3 $ 1,568.2 (1) Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Summary of Changes in Deferred Revenue Related to Material Right Performance Obligations | For the three months ended For the six months ended In millions November 30, 2018 November 30, 2018 Balance, beginning of period $ 45.7 $ 46.4 Deferral of revenue 7.1 13.2 Recognition of unearned revenue (6.8) (13.6) Balance, end of period $ 46.0 $ 46.0 |
Summary of Changes in Deferred Costs to Obtain and Fulfill Contracts | For the three months ended November 30, 2018 Beginning Capitalization Ending In millions balance of costs Amortization balance Costs to obtain a contract $ 448.5 $ 37.9 $ (39.1) $ 447.3 Costs to fulfill a contact $ 65.7 $ 5.9 $ (5.8) $ 65.8 For the six months ended November 30, 2018 Beginning Capitalization Ending In millions balance of costs Amortization balance Costs to obtain a contract $ 455.0 $ 70.3 $ (78.0) $ 447.3 Costs to fulfill a contact $ 65.4 $ 11.9 $ (11.5) $ 65.8 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | For the three months ended For the six months ended November 30, November 30, 2017 2017 In millions, except per share amounts 2018 As Adjusted (1) 2018 As Adjusted (1) Basic earnings per share: Net income $ 235.8 $ 198.8 $ 479.4 $ 409.2 Weighted-average common shares outstanding 359.1 359.1 359.1 359.0 Basic earnings per share $ 0.66 $ 0.55 $ 1.34 $ 1.14 Diluted earnings per share: Net income $ 235.8 $ 198.8 $ 479.4 $ 409.2 Weighted-average common shares outstanding 359.1 359.1 359.1 359.0 Dilutive effect of common share equivalents 2.4 2.3 2.4 2.4 Weighted-average common shares outstanding, assuming dilution 361.5 361.4 361.5 361.4 Diluted earnings per share $ 0.65 $ 0.55 $ 1.33 $ 1.13 Weighted-average anti-dilutive common share equivalents 0.6 1.2 0.5 1.1 (1) Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Investment Income, Net (Tables)
Investment Income, Net (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Investment Income, Net [Abstract] | |
Schedule of Investment Income, Net | For the three months ended For the six months ended November 30, November 30, In millions 2018 2017 2018 2017 Interest income on corporate funds $ 2.8 $ 2.7 $ 6.0 $ 5.6 Interest expense (0.8) (1.3) (1.7) (2.1) Net gain from equity-method investments 0.1 0.3 0.1 0.3 Investment income, net $ 2.1 $ 1.7 $ 4.4 $ 3.8 |
Funds Held for Clients and Co_2
Funds Held for Clients and Corporate Investments (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Funds Held for Clients and Corporate Investments [Abstract] | |
Funds Held for Clients and Corporate Investments | November 30, 2018 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other cash equivalents $ 957.2 $ — $ — $ 957.2 Available-for-sale securities: Corporate bonds 398.0 — (10.7) 387.3 General obligation municipal bonds 1,008.8 0.5 (11.7) 997.6 Pre-refunded municipal bonds (1) 49.8 0.1 (0.2) 49.7 Revenue municipal bonds 635.2 0.3 (8.3) 627.2 U.S. government agency securities 474.4 — (15.3) 459.1 Variable rate demand notes 433.4 — — 433.4 Total available-for-sale securities 2,999.6 0.9 (46.2) 2,954.3 Other 18.1 1.4 (0.3) 19.2 Total funds held for clients and corporate investments $ 3,974.9 $ 2.3 $ (46.5) $ 3,930.7 May 31, 2018 Gross Gross Amortized unrealized unrealized Fair In millions cost gains losses value Type of issue: Funds held for clients' money market securities and other cash equivalents $ 1,942.3 $ — $ — $ 1,942.3 Available-for-sale securities: Corporate bonds 328.6 0.1 (7.3) 321.4 General obligation municipal bonds 1,231.6 1.3 (11.2) 1,221.7 Pre-refunded municipal bonds (1) 50.9 0.1 (0.1) 50.9 Revenue municipal bonds 813.5 0.9 (8.0) 806.4 U.S. government agency securities 410.2 — (14.1) 396.1 Variable rate demand notes 308.3 — — 308.3 Total available-for-sale securities 3,143.1 2.4 (40.7) 3,104.8 Other 16.1 2.1 — 18.2 Total funds held for clients and corporate investments $ 5,101.5 $ 4.5 $ (40.7) $ 5,065.3 (1) Pre-refunded municipal bonds are secured by an escrow fund of U.S. government obligations. |
Classification of Investments on Consolidated Balance Sheets | November 30, May 31, In millions 2018 2018 Funds held for clients $ 3,672.3 $ 4,703.8 Corporate investments 248.4 66.0 Long-term corporate investments 10.0 295.5 Total funds held for clients and corporate investments $ 3,930.7 $ 5,065.3 |
Securities in Unrealized Loss Position | November 30, 2018 Securities in an unrealized loss position for less than twelve months Securities in an unrealized loss position for more than twelve months Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Corporate bonds $ (4.6) $ 230.9 $ (6.1) $ 144.8 $ (10.7) $ 375.7 General obligation municipal bonds (2.5) 417.6 (9.2) 447.5 (11.7) 865.1 Pre-refunded municipal bonds (0.1) 22.1 — 5.6 (0.1) 27.7 Revenue municipal bonds (1.3) 213.9 (7.0) 308.1 (8.3) 522.0 U.S. government agency securities (1.7) 111.2 (13.7) 347.9 (15.4) 459.1 Total $ (10.2) $ 995.7 $ (36.0) $ 1,253.9 $ (46.2) $ 2,249.6 May 31, 2018 Securities in an unrealized loss position for less than twelve months Securities in an unrealized loss position for more than twelve months Total Gross Gross Gross unrealized Fair unrealized Fair unrealized Fair In millions losses value losses value losses value Type of issue: Corporate bonds $ (6.0) $ 271.5 $ (1.3) $ 34.6 $ (7.3) $ 306.1 General obligation municipal bonds (8.7) 856.4 (2.5) 68.9 (11.2) 925.3 Pre-refunded municipal bonds (0.1) 18.5 — 0.5 (0.1) 19.0 Revenue municipal bonds (6.3) 540.9 (1.7) 50.9 (8.0) 591.8 U.S. government agency securities (6.4) 219.7 (7.7) 176.4 (14.1) 396.1 Total $ (27.5) $ 1,907.0 $ (13.2) $ 331.3 $ (40.7) $ 2,238.3 |
Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity | November 30, 2018 Amortized Fair In millions cost value Maturity date: Due in one year or less $ 193.3 $ 192.9 Due after one year through three years 825.2 818.0 Due after three years through five years 1,035.7 1,014.7 Due after five years 945.4 928.7 Total $ 2,999.6 $ 2,954.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | November 30, 2018 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: Cash equivalents: Commercial paper $ 380.0 $ — $ 380.0 $ — Time deposits 50.0 — 50.0 — Money market securities 12.3 12.3 — — Total cash equivalents $ 442.3 $ 12.3 $ 430.0 $ — Available-for-sale securities: Corporate bonds $ 387.3 $ — $ 387.3 $ — General obligation municipal bonds 997.6 — 997.6 — Pre-refunded municipal bonds 49.7 — 49.7 — Revenue municipal bonds 627.2 — 627.2 — U.S. government agency securities 459.1 — 459.1 — Variable rate demand notes 433.4 — 433.4 — Total available-for-sale securities $ 2,954.3 $ — $ 2,954.3 $ — Other $ 19.2 $ 19.2 $ — $ — Liabilities: Other long-term liabilities $ 19.2 $ 19.2 $ — $ — May 31, 2018 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: Cash equivalents: Commercial paper $ 655.0 $ — $ 655.0 $ — Time deposits 200.0 — 200.0 — Money market securities 7.1 7.1 — — Total cash equivalents $ 862.1 $ 7.1 $ 855.0 $ — Available-for-sale securities: Corporate bonds $ 321.4 $ — $ 321.4 $ — General obligation municipal bonds 1,221.7 — 1,221.7 — Pre-refunded municipal bonds 50.9 — 50.9 — Revenue municipal bonds 806.4 — 806.4 — U.S. government agency securities 396.1 — 396.1 — Variable rate demand notes 308.3 — 308.3 — Total available-for-sale securities $ 3,104.8 $ — $ 3,104.8 $ — Other $ 18.2 $ 18.2 $ — $ — Liabilities: Other long-term liabilities $ 18.2 $ 18.2 $ — $ — |
Accounts Receivable, Net of A_2
Accounts Receivable, Net of Allowance for Doubtful Accounts (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Accounts Receivable, Net of Allowance for Doubtful Accounts [Abstract] | |
Components of Accounts Receivable, Net of Allowance for Doubtful Accounts | May 31, November 30, 2018 In millions 2018 As Adjusted (1) PEO receivables (2) $ 167.9 $ 140.1 Purchased receivables (3) 323.3 267.0 Other trade receivables (4) 77.9 92.3 Total accounts receivable, gross 569.1 499.4 Less: Allowance for doubtful accounts 6.5 7.0 Accounts receivable, net of allowance for doubtful accounts $ 562.6 $ 492.4 (1) Amounts have been adjusted to reflect the adoption of ASC Topic 606 . (2) PEO receivables are primarily client wages and related tax withholdings since the last payroll processed. Balances will vary based on the timing of the last payroll processed and the end of the reporting period. (3) Purchased receivables relate to payroll funding arrangements with clients in the temporary staffing industry. (4) Other trade receivables primarily relate to other ongoing services provided to our clients and can vary based on the timing of these services and the end of the reporting period. |
Property and Equipment, Net o_2
Property and Equipment, Net of Accumulated Depreciation (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Property and Equipment, Net of Accumulated Depreciation [Abstract] | |
Components of Property and Equipment, at Cost | November 30, May 31, In millions 2018 2018 Land and improvements $ 10.7 $ 10.6 Buildings and improvements 162.2 126.4 Data processing equipment 215.3 211.3 Software (1) 580.0 545.5 Furniture, fixtures, and equipment 115.6 114.5 Leasehold improvements 107.3 111.4 Construction in progress (1) 30.3 63.0 Total property and equipment, gross 1,221.4 1,182.7 Less: Accumulated depreciation 827.4 789.2 Property and equipment, net of accumulated depreciation $ 394.0 $ 393.5 (1) Software includes both purchased software and costs capitalized related to internally developed software placed in service. Capitalized costs related to internally developed software that has not yet been placed in service is included in construction in progress. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net of Accumulated Amortization (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets, Net of Accumulated Amortization [Abstract] | |
Components of Intangible Assets, at Cost | November 30, May 31, In millions 2018 2018 Client lists $ 305.7 $ 308.5 Other intangible assets 12.8 13.3 Total intangible assets, gross 318.5 321.8 Less: Accumulated amortization 190.5 180.4 Intangible assets, net of accumulated amortization $ 128.0 $ 141.4 |
Estimated Amortization Expense | In millions Estimated amortization Year ending May 31, expense 2019 $ 25.9 2020 22.6 2021 19.5 2022 16.6 2023 14.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 6 Months Ended |
Nov. 30, 2018 | |
Accumulated Other Comprehensive (Loss)/Income [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss)/ Income | For the three months ended For the six months ended November 30, November 30, In millions 2018 2017 2018 2017 Beginning balance $ (35.8) $ 24.4 $ (36.2) $ 20.0 Other comprehensive (loss)/income: Unrealized losses on available-for-sale securities, net of tax (7.2) (33.6) (5.2) (29.3) Foreign currency translation adjustment (4.4) — (6.0) 0.1 Total other comprehensive loss, net of tax (11.6) (33.6) (11.2) (29.2) Ending balance $ (47.4) $ (9.2) $ (47.4) $ (9.2) Total tax benefit included in other comprehensive loss $ (1.8) $ (19.3) $ (2.3) $ (16.8) |
Short-term Financing (Tables)
Short-term Financing (Tables) - Revolving Credit Facility [Member] | 6 Months Ended |
Nov. 30, 2018 | |
Line of Credit Facility [Line Items] | |
Description of Credit Facilities | Bank Borrower (1) Date Entered Expiration Date Maximum Amount Available Purpose JP Morgan Chase Bank, N.A. (2) Paychex of New York, LLC August 5, 2015 August 5, 2020 $1 Billion To meet short-term funding requirements. JP Morgan Chase Bank, N.A. (2) Paychex of New York, LLC August 17, 2017 August 17, 2022 $500 Million To meet short-term funding requirements. PNC Bank, National Association (“PNC”) Paychex Advance, LLC March 17, 2016 March 17, 2020 $150 Million To finance working capital needs and general corporate purposes. (1) Borrower is a wholly owned subsidiary of the Company. (2) JP Morgan Chase Bank, N.A. (“JPM”) acts as the administrative agent for this syndicated credit facility. |
JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facility Amount Borrowed | For the three months ended For the six months ended November 30, November 30, $ in millions 2018 2017 2018 2017 Number of days borrowed 4 6 10 19 Maximum amount borrowed $ 483.0 $ 700.0 $ 483.0 $ 700.0 Weighted-average amount borrowed $ 389.8 $ 445.8 $ 285.7 $ 331.6 Weighted-average interest rate 5.12 % 4.25 % 5.06 % 4.24 % |
JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facility Amount Borrowed | For the three months ended For the six months ended November 30, November 30, $ in millions 2018 2017 2018 2017 Number of days borrowed 3 20 7 20 Maximum amount borrowed $ 135.5 $ 400.0 $ 223.0 $ 400.0 Weighted-average amount borrowed $ 83.0 $ 215.8 $ 111.8 $ 215.8 Weighted-average interest rate 5.25 % 2.84 % 5.07 % 2.84 % |
PNC $150 Million Credit Facility [Member] | PNC Bank, National Association [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facility Amount Borrowed | For the three months ended For the six months ended November 30, November 30, $ in millions 2018 2017 2018 2017 Number of days borrowed 91 91 179 179 Maximum amount borrowed $ 57.7 $ 58.6 $ 57.7 $ 58.6 Weighted-average amount borrowed $ 57.3 $ 57.8 $ 56.6 $ 56.8 Weighted-average interest rate 2.68 % 1.78 % 2.61 % 1.73 % |
Description of Business, Basi_4
Description of Business, Basis of Presentation, and Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2018USD ($)segment | Nov. 30, 2017USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | May 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | May 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 01, 2016USD ($) | |
Accounting Policies [Line Items] | |||||||||||||
Number of reportable segments | segment | 1 | ||||||||||||
Stock-based compensation costs recognized | $ 11.9 | $ 10.4 | $ 22.8 | $ 19.1 | |||||||||
Maximum individual workers' compensation claims liability | $ 1.3 | ||||||||||||
Maximum individual health insurance claims liability | $ 0.3 | $ 0.3 | |||||||||||
Scenario, Forecast [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Maximum individual workers' compensation claims liability | $ 1 | ||||||||||||
ASU 2014-09 [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Cumulative adjustment to increase stockholder's equity | $ 262.9 | ||||||||||||
HR Outsourcing Holdings, Inc. [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Maximum individual workers' compensation claims liability | $ 0.5 | ||||||||||||
Maximum individual health insurance claims liability | $ 0.3 | ||||||||||||
HR Outsourcing Holdings, Inc. [Member] | Scenario, Forecast [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Maximum individual workers' compensation claims liability | $ 0.8 | ||||||||||||
Maximum individual health insurance claims liability | $ 0.3 | ||||||||||||
Europe [Member] | Revenue [Member] | Geographic Concentration Risk [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Total percentage | 1.00% | 1.00% | |||||||||||
Europe [Member] | Revenue [Member] | Geographic Concentration Risk [Member] | Maximum [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Total percentage | 1.00% | 1.00% | |||||||||||
Europe [Member] | Long Lived Assets [Member] | Geographic Concentration Risk [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Total percentage | 10.00% | 10.00% |
Description of Business, Basi_5
Description of Business, Basis of Presentation, and Significant Accounting Policies (Schedule of Recast of Selected Unaudited Consolidated Statements of Income and Comprehensive Income) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Service revenue | $ 840.6 | $ 789 | [1] | $ 1,686.3 | $ 1,568.2 | [1] |
Operating expenses | 264.9 | 248.6 | [1] | 530.4 | 480.6 | [1] |
Selling, general and administrative expenses | 286.8 | 251.3 | [1] | 563.8 | 494.9 | [1] |
Total expenses | 551.7 | 499.9 | [1] | 1,094.2 | 975.5 | [1] |
Operating income | 307.2 | 303.1 | [1] | 627.5 | 620.4 | [1] |
Income taxes | 73.5 | 106 | [1] | 152.5 | 215 | [1] |
Net income | $ 235.8 | $ 198.8 | [1],[2] | $ 479.4 | $ 409.2 | [1],[2] |
Basic earnings per share | $ 0.66 | $ 0.55 | [1],[2] | $ 1.34 | $ 1.14 | [1],[2] |
Diluted earnings per share | $ 0.65 | $ 0.55 | [1],[2] | $ 1.33 | $ 1.13 | [1],[2] |
As Previously Reported [Member] | ASU 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Service revenue | $ 812.5 | $ 1,615.6 | ||||
Operating expenses | 248.7 | 480.8 | ||||
Selling, general and administrative expenses | 245.6 | 485.3 | ||||
Total expenses | 494.3 | 966.1 | ||||
Operating income | 332.2 | 677.2 | ||||
Income taxes | 116.9 | 236.2 | ||||
Net income | $ 217 | $ 444.8 | ||||
Basic earnings per share | $ 0.60 | $ 1.24 | ||||
Diluted earnings per share | $ 0.60 | $ 1.23 | ||||
Adjustments [Member] | ASU 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Service revenue | $ (23.5) | $ (47.4) | ||||
Operating expenses | (0.1) | (0.2) | ||||
Selling, general and administrative expenses | 5.7 | 9.6 | ||||
Total expenses | 5.6 | 9.4 | ||||
Operating income | (29.1) | (56.8) | ||||
Income taxes | (10.9) | (21.2) | ||||
Net income | $ (18.2) | $ (35.6) | ||||
Basic earnings per share | $ (0.05) | $ (0.10) | ||||
Diluted earnings per share | $ (0.05) | $ (0.10) | ||||
[1] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). | |||||
[2] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Description of Business, Basi_6
Description of Business, Basis of Presentation, and Significant Accounting Policies (Schedule of Recast of Selected Unaudited Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 | ||
Assets | ||||
Accounts receivable, net of allowance for doubtful accounts | $ 562.6 | $ 492.4 | [1] | |
Prepaid expenses and other current assets | 234.2 | 224 | [1] | |
Long-term deferred costs | 354 | 361 | [1],[2] | |
Liabilities and stockholders' equity | ||||
Accounts payable | 70.6 | 73.7 | [1] | |
Deferred revenue | 42.5 | 34.6 | [1] | |
Deferred income taxes | 161.6 | 154.4 | [1] | |
Other long-term liabilities | 89.8 | 89.1 | [1] | |
Retained earnings | $ 1,302.6 | 1,262.6 | [1] | |
ASU 2014-09 [Member] | As Previously Reported [Member] | ||||
Assets | ||||
Accounts receivable, net of allowance for doubtful accounts | 531.4 | |||
Prepaid expenses and other current assets | 75.8 | |||
Long-term deferred costs | [2] | 18.5 | ||
Liabilities and stockholders' equity | ||||
Accounts payable | 74.5 | |||
Deferred revenue | 24.3 | |||
Deferred income taxes | 48.8 | |||
Other long-term liabilities | 84.8 | |||
Retained earnings | 930.3 | |||
ASU 2014-09 [Member] | Adjustments [Member] | ||||
Assets | ||||
Accounts receivable, net of allowance for doubtful accounts | (39) | |||
Prepaid expenses and other current assets | 148.2 | |||
Long-term deferred costs | [2] | 342.5 | ||
Liabilities and stockholders' equity | ||||
Accounts payable | (0.8) | |||
Deferred revenue | 10.3 | |||
Deferred income taxes | 105.6 | |||
Other long-term liabilities | 4.3 | |||
Retained earnings | $ 332.3 | |||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | |||
[2] | Amounts were previously reported as a component of other long-term assets on the Consolidated Balance Sheets included in the Company's fiscal 2018 Form 10-K. Long-term deferred costs are separately presented on the Consolidated Balance Sheets contained in this Form 10-Q. |
Description of Business, Basi_7
Description of Business, Basis of Presentation, and Significant Accounting Policies (Schedule of Recast of Selected Unaudited Consolidated Statement of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |||
Cash flows from operating activities | ||||||
Net income | $ 235.8 | $ 198.8 | [1],[2] | $ 479.4 | $ 409.2 | [1],[2] |
Provision for deferred income taxes | 10.9 | 47.2 | [1] | |||
Accounts receivable | (71.6) | (8.5) | [1] | |||
Prepaid expenses and other current assets | (26.7) | (25.8) | [1] | |||
Accounts payable and other current liabilities | (30.2) | (35.5) | [1] | |||
Deferred costs | 7.3 | 10.6 | [1] | |||
Net change in other long-term assets and liabilities | $ (0.4) | 1.1 | [1] | |||
ASU 2014-09 [Member] | As Previously Reported [Member] | ||||||
Cash flows from operating activities | ||||||
Net income | 217 | 444.8 | ||||
Provision for deferred income taxes | 68.4 | |||||
Accounts receivable | (56.5) | |||||
Accounts payable and other current liabilities | (34.3) | |||||
Deferred costs | ||||||
Net change in other long-term assets and liabilities | 1.7 | |||||
ASU 2014-09 [Member] | Adjustments [Member] | ||||||
Cash flows from operating activities | ||||||
Net income | $ (18.2) | (35.6) | ||||
Provision for deferred income taxes | (21.2) | |||||
Accounts receivable | 48 | |||||
Accounts payable and other current liabilities | (1.2) | |||||
Deferred costs | 10.6 | |||||
Net change in other long-term assets and liabilities | $ (0.6) | |||||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | |||||
[2] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). |
Service Revenue (Narrative) (De
Service Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2018 | Nov. 30, 2018 | |
Service Revenue [Line Items] | ||
Percentage of client worksite employees participation in benefit plans not retained risk | 60.00% | |
Percentage of client worksite employees participation in benefit plans retained risk | 40.00% | |
Revenue performance obligations timing | the Company defers revenue associated with these performance obligations, which exceed one year, and subsequently recognizes these as future services are provided, over approximately three to four years | |
Deferral of revenue | $ 6.8 | $ 13.6 |
Impairment loss | $ 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 | |
Remainder Of Fiscal 2019 [Member] | ||
Service Revenue [Line Items] | ||
Deferral of revenue | $ 12.8 | |
Fiscal Year Ended May 31, 2020 [Member] | ||
Service Revenue [Line Items] | ||
Deferral of revenue | 18.5 | |
Thereafter [Member] | ||
Service Revenue [Line Items] | ||
Deferral of revenue | $ 14.7 |
Service Revenue (Summary of Dis
Service Revenue (Summary of Disaggregates Revenue by Services) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | [1] | Nov. 30, 2018 | Nov. 30, 2017 | [1] | |
Disaggregation of Revenue [Line Items] | ||||||
Total service revenue | $ 840.6 | $ 789 | $ 1,686.3 | $ 1,568.2 | ||
Management Solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total service revenue | 685.4 | 653.5 | 1,373.1 | 1,319.4 | ||
PEO And Insurance Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total service revenue | $ 155.2 | $ 135.5 | $ 313.2 | $ 248.8 | ||
[1] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). |
Service Revenue (Summary of Cha
Service Revenue (Summary of Changes in Deferred Revenue Related to Material Right Performance Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Nov. 30, 2018 | Nov. 30, 2018 | |
Service Revenue [Abstract] | ||
Balance, beginning of period | $ 45.7 | $ 46.4 |
Deferral of revenue | 7.1 | 13.2 |
Recognition of unearned revenue | (6.8) | (13.6) |
Balance, end of period | $ 46 | $ 46 |
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 | 6 Months Ended |
Nov. 30, 2018 | Nov. 30, 2018 | |
Costs To Obtain A Contract [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Beginning balance | $ 448.5 | $ 455 |
Capitalization of costs | 37.9 | 70.3 |
Amortization | (39.1) | (78) |
Ending balance | 447.3 | 447.3 |
Costs To Fulfill A Contract [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Beginning balance | 65.7 | 65.4 |
Capitalization of costs | 5.9 | 11.9 |
Amortization | (5.8) | (11.5) |
Ending balance | $ 65.8 | $ 65.8 |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Jul. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock issued in connection with exercise or vesting of stock-based awards | 0.1 | 0.3 | 0.6 | 0.8 | |
Common stock issued related to acquisition | 0.6 | ||||
Quarterly dividend per share | $ 0.56 | $ 0.50 | $ 1.12 | $ 1 | |
Authorized in July 2016 [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Expiration date | May 31, 2019 | ||||
Approved repurchase amount | $ 350 | ||||
Common stock repurchased and retired, shares | 0 | 0 | 0.5 | 1.6 | |
Common stock repurchased and retired, values | $ 32.8 | $ 94.1 |
Basic and Diluted Earnings Pe_4
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 | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | [1] | Nov. 30, 2018 | Nov. 30, 2017 | [1] | |
Basic earnings per share: | ||||||
Net income | $ 235.8 | $ 198.8 | [2] | $ 479.4 | $ 409.2 | [2] |
Weighted-average common shares outstanding | 359.1 | 359.1 | [2] | 359.1 | 359 | [2] |
Basic earnings per share | $ 0.66 | $ 0.55 | [2] | $ 1.34 | $ 1.14 | [2] |
Diluted earnings per share: | ||||||
Dilutive effect of common share equivalents | 2.4 | 2.3 | 2.4 | 2.4 | ||
Weighted-average common shares outstanding, assuming dilution | 361.5 | 361.4 | [2] | 361.5 | 361.4 | [2] |
Diluted earnings per share | $ 0.65 | $ 0.55 | [2] | $ 1.33 | $ 1.13 | [2] |
Weighted-average anti-dilutive common share equivalents | 0.6 | 1.2 | 0.5 | 1.1 | ||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | |||||
[2] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Millions | Dec. 20, 2018USD ($) | Feb. 28, 2018USD ($) | Aug. 18, 2017USD ($)state | Nov. 30, 2018USD ($) | Nov. 23, 2018stateitem | May 31, 2018USD ($) | [1] |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 810.6 | $ 814 | |||||
Oasis Outsourcing Group Holdings, L.P. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition agreement date | Nov. 23, 2018 | ||||||
Effective acquisition date | Dec. 20, 2018 | ||||||
Number of states | state | 50 | ||||||
Oasis Outsourcing Group Holdings, L.P. [Member] | Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 1,000 | ||||||
Cash on hand portion of purchase price | 400 | ||||||
Credit facility portion of purchase price | 800 | ||||||
Cash acquired | $ 200 | ||||||
Oasis Outsourcing Group Holdings, L.P. [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of clients | item | 8,400 | ||||||
Lessor Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Effective acquisition date | Feb. 28, 2018 | ||||||
Purchase price | $ 162.5 | ||||||
Cash acquired | 13.4 | ||||||
Goodwill | $ 111.5 | ||||||
HR Outsourcing Holdings, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Effective acquisition date | Aug. 18, 2017 | ||||||
Purchase price | $ 75.4 | ||||||
Cash portion of purchase price | 42.2 | ||||||
Common stock issued portion of purchase price | 33.2 | ||||||
Goodwill | $ 51.1 | ||||||
HR Outsourcing Holdings, Inc. [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of states | state | 35 | ||||||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Investment Income, Net (Schedul
Investment Income, Net (Schedule of Investment Income, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |||
Investment Income, Net [Abstract] | ||||||
Interest income on corporate funds | $ 2.8 | $ 2.7 | $ 6 | $ 5.6 | ||
Interest expense | (0.8) | (1.3) | (1.7) | (2.1) | ||
Net gain from equity-method investments | 0.1 | 0.3 | 0.1 | 0.3 | ||
Investment income, net | $ 2.1 | $ 1.7 | [1] | $ 4.4 | $ 3.8 | [1] |
[1] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). |
Funds Held for Clients and Co_3
Funds Held for Clients and Corporate Investments (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2018USD ($)security | Nov. 30, 2017USD ($) | Nov. 30, 2018USD ($)security | Nov. 30, 2017USD ($) | May 31, 2018USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Net unrealized losses on available-for-sale securities | $ 45.3 | $ 45.3 | $ 38.3 | ||
Number of available-for-sale securities in an unrealized loss position | security | 1,090 | 1,090 | 970 | ||
Gross unrealized losses on available-for-sale securities | $ 46.2 | $ 46.2 | $ 40.7 | ||
Realized losses on available-for-sale securities | $ 0.4 | $ 0 | $ 0.4 | $ 0 | |
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_4
Funds Held for Clients and Corporate Investments (Funds Held for Clients and Corporate Investments) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Funds held for clients' money market securities and other cash equivalents, Amortized cost | $ 957.2 | $ 1,942.3 | |
Funds held for clients' money market securities and other cash equivalents, Gross unrealized gains | |||
Funds held for clients' money market securities and other cash equivalents, Gross unrealized losses | |||
Funds held for clients' money market securities and other cash equivalents, Fair value | 957.2 | 1,942.3 | |
Available-for-sale securities, Amortized cost | 2,999.6 | 3,143.1 | |
Available-for-sale securities, Gross unrealized gains | 0.9 | 2.4 | |
Available-for-sale securities, Gross unrealized losses | (46.2) | (40.7) | |
Available-for-sale securities, Fair value | 2,954.3 | 3,104.8 | |
Other, Amortized cost | 18.1 | 16.1 | |
Other, Gross unrealized gains | 1.4 | 2.1 | |
Other, Gross unrealized losses | (0.3) | ||
Other, Fair value | 19.2 | 18.2 | |
Total funds held for clients and corporate investments, Amortized cost | 3,974.9 | 5,101.5 | |
Total funds held for clients and corporate investments, Gross unrealized gains | 2.3 | 4.5 | |
Total funds held for clients and corporate investments, Gross unrealized losses | (46.5) | (40.7) | |
Total funds held for clients and corporate investments, Fair value | 3,930.7 | 5,065.3 | |
Corporate Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized cost | 398 | 328.6 | |
Available-for-sale securities, Gross unrealized gains | 0.1 | ||
Available-for-sale securities, Gross unrealized losses | (10.7) | (7.3) | |
Available-for-sale securities, Fair value | 387.3 | 321.4 | |
General Obligation Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized cost | 1,008.8 | 1,231.6 | |
Available-for-sale securities, Gross unrealized gains | 0.5 | 1.3 | |
Available-for-sale securities, Gross unrealized losses | (11.7) | (11.2) | |
Available-for-sale securities, Fair value | 997.6 | 1,221.7 | |
Pre-Refunded Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized cost | [1] | 49.8 | 50.9 |
Available-for-sale securities, Gross unrealized gains | [1] | 0.1 | 0.1 |
Available-for-sale securities, Gross unrealized losses | [1] | (0.2) | (0.1) |
Available-for-sale securities, Fair value | [1] | 49.7 | 50.9 |
Revenue Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized cost | 635.2 | 813.5 | |
Available-for-sale securities, Gross unrealized gains | 0.3 | 0.9 | |
Available-for-sale securities, Gross unrealized losses | (8.3) | (8) | |
Available-for-sale securities, Fair value | 627.2 | 806.4 | |
U.S. Government Agency Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized cost | 474.4 | 410.2 | |
Available-for-sale securities, Gross unrealized gains | |||
Available-for-sale securities, Gross unrealized losses | (15.3) | (14.1) | |
Available-for-sale securities, Fair value | 459.1 | 396.1 | |
Variable Rate Demand Notes [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized cost | 433.4 | 308.3 | |
Available-for-sale securities, Gross unrealized gains | |||
Available-for-sale securities, Gross unrealized losses | |||
Available-for-sale securities, Fair value | $ 433.4 | $ 308.3 | |
[1] | Pre-refunded municipal bonds are secured by an escrow fund of U.S. government obligations. |
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 | Nov. 30, 2018 | May 31, 2018 | |
Funds Held for Clients and Corporate Investments [Abstract] | |||
Funds held for clients | $ 3,672.3 | $ 4,703.8 | [1] |
Corporate investments | 248.4 | 66 | [1] |
Long-term corporate investments | 10 | 295.5 | [1] |
Total funds held for clients and corporate investments, Fair value | $ 3,930.7 | $ 5,065.3 | |
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Funds Held for Clients and Co_6
Funds Held for Clients and Corporate Investments (Securities in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in an unrealized loss position for less than twelve months, Gross unrealized losses | $ (10.2) | $ (27.5) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (36) | (13.2) |
Total, Gross unrealized losses | (46.2) | (40.7) |
Securities in an unrealized loss position for less than twelve months, Fair value | 995.7 | 1,907 |
Securities in an unrealized loss position for more than twelve months, Fair value | 1,253.9 | 331.3 |
Total, Fair value | 2,249.6 | 2,238.3 |
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 | (4.6) | (6) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (6.1) | (1.3) |
Total, Gross unrealized losses | (10.7) | (7.3) |
Securities in an unrealized loss position for less than twelve months, Fair value | 230.9 | 271.5 |
Securities in an unrealized loss position for more than twelve months, Fair value | 144.8 | 34.6 |
Total, Fair value | 375.7 | 306.1 |
General Obligation 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 | (2.5) | (8.7) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (9.2) | (2.5) |
Total, Gross unrealized losses | (11.7) | (11.2) |
Securities in an unrealized loss position for less than twelve months, Fair value | 417.6 | 856.4 |
Securities in an unrealized loss position for more than twelve months, Fair value | 447.5 | 68.9 |
Total, Fair value | 865.1 | 925.3 |
Pre-Refunded 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 | (0.1) | (0.1) |
Total, Gross unrealized losses | (0.1) | (0.1) |
Securities in an unrealized loss position for less than twelve months, Fair value | 22.1 | 18.5 |
Securities in an unrealized loss position for more than twelve months, Fair value | 5.6 | 0.5 |
Total, Fair value | 27.7 | 19 |
Revenue 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 | (1.3) | (6.3) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (7) | (1.7) |
Total, Gross unrealized losses | (8.3) | (8) |
Securities in an unrealized loss position for less than twelve months, Fair value | 213.9 | 540.9 |
Securities in an unrealized loss position for more than twelve months, Fair value | 308.1 | 50.9 |
Total, Fair value | 522 | 591.8 |
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 | (1.7) | (6.4) |
Securities in an unrealized loss position for more than twelve months, Gross unrealized losses | (13.7) | (7.7) |
Total, Gross unrealized losses | (15.4) | (14.1) |
Securities in an unrealized loss position for less than twelve months, Fair value | 111.2 | 219.7 |
Securities in an unrealized loss position for more than twelve months, Fair value | 347.9 | 176.4 |
Total, Fair value | $ 459.1 | $ 396.1 |
Funds Held for Clients and Co_7
Funds Held for Clients and Corporate Investments (Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 |
Funds Held for Clients and Corporate Investments [Abstract] | ||
Due in one year or less, Amortized cost | $ 193.3 | |
Due after one year through three years, Amortized cost | 825.2 | |
Due after three years through five years, Amortized cost | 1,035.7 | |
Due after five years, Amortized cost | 945.4 | |
Available-for-sale securities, Amortized cost | 2,999.6 | $ 3,143.1 |
Due in one year or less, Fair value | 192.9 | |
Due after one year through three years, Fair value | 818 | |
Due after three years through five years, Fair value | 1,014.7 | |
Due after five years, Fair value | 928.7 | |
Available-for-sale securities, Fair value | $ 2,954.3 | $ 3,104.8 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 442.3 | $ 862.1 |
Available-for-sale securities | 2,954.3 | 3,104.8 |
Other | 19.2 | 18.2 |
Other long-term liabilities | 19.2 | 18.2 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 380 | 655 |
Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50 | 200 |
Money Market Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12.3 | 7.1 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 387.3 | 321.4 |
General Obligation Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 997.6 | 1,221.7 |
Pre-Refunded Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49.7 | 50.9 |
Revenue Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 627.2 | 806.4 |
U.S. Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 459.1 | 396.1 |
Variable Rate Demand Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 433.4 | 308.3 |
Quoted Prices in Active Markets (Level 1) [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12.3 | 7.1 |
Available-for-sale securities | ||
Other | 19.2 | 18.2 |
Other long-term liabilities | 19.2 | 18.2 |
Quoted Prices in Active Markets (Level 1) [Member] | Commercial Paper [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Quoted Prices in Active Markets (Level 1) [Member] | Time Deposits [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
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] | ||
Cash equivalents | 12.3 | 7.1 |
Quoted Prices in Active Markets (Level 1) [Member] | Corporate Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Quoted Prices in Active Markets (Level 1) [Member] | General Obligation Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Quoted Prices in Active Markets (Level 1) [Member] | Pre-Refunded Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Quoted Prices in Active Markets (Level 1) [Member] | Revenue Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Quoted Prices in Active Markets (Level 1) [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 | ||
Quoted Prices in Active Markets (Level 1) [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 | ||
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 430 | 855 |
Available-for-sale securities | 2,954.3 | 3,104.8 |
Other | ||
Other long-term liabilities | ||
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] | ||
Cash equivalents | 380 | 655 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50 | 200 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
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 | 387.3 | 321.4 |
Significant Other Observable Inputs (Level 2) [Member] | General Obligation Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 997.6 | 1,221.7 |
Significant Other Observable Inputs (Level 2) [Member] | Pre-Refunded Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49.7 | 50.9 |
Significant Other Observable Inputs (Level 2) [Member] | Revenue Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 627.2 | 806.4 |
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 | 459.1 | 396.1 |
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 | 433.4 | 308.3 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Available-for-sale securities | ||
Other | ||
Other long-term liabilities | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Paper [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Significant Unobservable Inputs (Level 3) [Member] | Time Deposits [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Significant Unobservable Inputs (Level 3) [Member] | Money Market Securities [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Significant Unobservable Inputs (Level 3) [Member] | General Obligation Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Significant Unobservable Inputs (Level 3) [Member] | Pre-Refunded Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Significant Unobservable Inputs (Level 3) [Member] | Revenue Municipal Bonds [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Significant Unobservable Inputs (Level 3) [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 | ||
Significant Unobservable Inputs (Level 3) [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 |
Accounts Receivable, Net of A_3
Accounts Receivable, Net of Allowance for Doubtful Accounts (Components of Accounts Receivable, Net of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 | [1] | |
Total accounts receivable, gross | $ 569.1 | $ 499.4 | ||
Less: Allowance for doubtful accounts | 6.5 | 7 | ||
Accounts receivable, net of allowance for doubtful accounts | 562.6 | 492.4 | ||
PEO Receivables [Member] | ||||
Total accounts receivable, gross | [2] | 167.9 | 140.1 | |
Purchased Receivables [Member] | ||||
Total accounts receivable, gross | [3] | 323.3 | 267 | |
Other Trade Receivables [Member] | ||||
Total accounts receivable, gross | [4] | $ 77.9 | $ 92.3 | |
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | |||
[2] | PEO receivables are primarily client wages and related tax withholdings since the last payroll processed. Balances will vary based on the timing of the last payroll processed and the end of the reporting period. | |||
[3] | Purchased receivables relate to payroll funding arrangements with clients in the temporary staffing industry. | |||
[4] | Other trade receivables primarily relate to other ongoing services provided to our clients and can vary based on the timing of these services and the end of the reporting period. |
Property and Equipment, Net o_3
Property and Equipment, Net of Accumulated Depreciation (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018USD ($)ft² | Nov. 30, 2017USD ($)item | Nov. 30, 2018USD ($)ft² | Nov. 30, 2017USD ($) | May 31, 2018USD ($) | ||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation expense | $ 30.2 | $ 28.4 | $ 56.5 | |||
Cost of building purchased | $ 60.8 | $ 95.5 | [1] | |||
Multi-Building Campus [Member] | Rochester, NY [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of buildings purchased | item | 5 | |||||
Cost of building purchased | $ 34.7 | |||||
Construction in progress | $ 32 | |||||
Escrow for building renovations | $ 16 | |||||
Remaining balance in escrow | $ 1.5 | $ 1.5 | $ 14.2 | |||
Multi-Building Campus [Member] | Rochester, NY [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Renovation square feet | ft² | 300,000 | 300,000 | ||||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Property and Equipment, Net o_4
Property and Equipment, Net of Accumulated Depreciation (Components of Property and Equipment, at Cost) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 | ||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | $ 1,221.4 | $ 1,182.7 | ||
Less: Accumulated depreciation | 827.4 | 789.2 | ||
Property and equipment, net of accumulated depreciation | 394 | 393.5 | [1] | |
Land and Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | 10.7 | 10.6 | ||
Buildings and Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | 162.2 | 126.4 | ||
Data Processing Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | 215.3 | 211.3 | ||
Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | [2] | 580 | 545.5 | |
Furniture, Fixtures, and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | 115.6 | 114.5 | ||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | 107.3 | 111.4 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment, gross | [2] | $ 30.3 | $ 63 | |
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | |||
[2] | Software includes both purchased software and costs capitalized related to internally developed software placed in service. Capitalized costs related to internally developed software that has not yet been placed in service is included in construction in progress. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net of Accumulated Amortization (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | May 31, 2018 | [1] | |
Goodwill and Intangible Assets, Net of Accumulated Amortization [Abstract] | ||||||
Goodwill | $ 810.6 | $ 810.6 | $ 814 | |||
Amortization expense | $ 6.6 | $ 5.3 | $ 13.1 | $ 9.2 | ||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net of Accumulated Amortization (Components of Intangible Assets, at Cost) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 | |
Intangible Assets [Line Items] | |||
Total intangible assets, gross | $ 318.5 | $ 321.8 | |
Less: Accumulated amortization | 190.5 | 180.4 | |
Intangible assets, net of accumulated amortization | 128 | 141.4 | [1] |
Client Lists [Member] | |||
Intangible Assets [Line Items] | |||
Total intangible assets, gross | 305.7 | 308.5 | |
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Total intangible assets, gross | $ 12.8 | $ 13.3 | |
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net of Accumulated Amortization (Estimated Amortization Expense) (Details) $ in Millions | Nov. 30, 2018USD ($) |
Year ending May 31 | |
2,019 | $ 25.9 |
2,020 | 22.6 |
2,021 | 19.5 |
2,022 | 16.6 |
2,023 | $ 14.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss)/Income (Changes in Accumulated Other Comprehensive (Loss)/Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | ||||
Accumulated Other Comprehensive (Loss)/Income [Abstract] | |||||||
Beginning balance | $ (35.8) | $ 24.4 | $ (36.2) | [1] | $ 20 | ||
Unrealized losses on available-for-sale securities, net of tax | (7.2) | (33.6) | (5.2) | (29.3) | |||
Foreign currency translation adjustment | (4.4) | (6) | 0.1 | ||||
Total other comprehensive loss, net of tax | (11.6) | (33.6) | [2] | (11.2) | (29.2) | [2] | |
Ending balance | (47.4) | (9.2) | (47.4) | (9.2) | |||
Total tax benefit included in other comprehensive loss | $ (1.8) | $ (19.3) | $ (2.3) | $ (16.8) | |||
[1] | Amounts have been adjusted to reflect the adoption of ASC Topic 606. | ||||||
[2] | Amounts have been adjusted to reflect the adoption of Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers" ("ASC Topic 606"). |
Short-term Financing (Narrative
Short-term Financing (Narrative) (Details) - USD ($) $ in Millions | Dec. 01, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | May 31, 2018 |
Revolving Credit Facility [Member] | JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amounts outstanding | $ 0 | $ 0 | $ 0 | |||
Amount borrowed | $ 483 | $ 700 | $ 483 | $ 700 | ||
Number of days borrowed | 4 days | 6 days | 10 days | 19 days | ||
Weighted-average interest rate | 5.12% | 4.25% | 5.06% | 4.24% | ||
Weighted-average amount borrowed | $ 389.8 | $ 445.8 | $ 285.7 | $ 331.6 | ||
Revolving Credit Facility [Member] | JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount borrowed | $ 400 | |||||
Due date | Feb. 20, 2019 | |||||
Revolving Credit Facility [Member] | JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | LIBOR [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 3.50% | |||||
Revolving Credit Facility [Member] | JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Three Days [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount borrowed | $ 100 | |||||
Number of days borrowed | 3 days | |||||
Weighted-average interest rate | 4.25% | |||||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amounts outstanding | 0 | 0 | 0 | |||
Amount borrowed | $ 135.5 | $ 400 | $ 223 | $ 400 | ||
Number of days borrowed | 3 days | 20 days | 7 days | 20 days | ||
Weighted-average interest rate | 5.25% | 2.84% | 5.07% | 2.84% | ||
Weighted-average amount borrowed | $ 83 | $ 215.8 | $ 111.8 | $ 215.8 | ||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount borrowed | $ 400 | |||||
Due date | Feb. 20, 2019 | |||||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | LIBOR [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 3.50% | |||||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Seven Days [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount borrowed | $ 300 | $ 300 | ||||
Number of days borrowed | 7 days | 7 days | ||||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Seven Days [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Weighted-average interest rate | 2.13% | 2.13% | ||||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Eleven Days [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount borrowed | $ 75 | $ 75 | ||||
Number of days borrowed | 11 days | 11 days | ||||
Revolving Credit Facility [Member] | JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | Eleven Days [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Weighted-average interest rate | 2.19% | 2.19% | ||||
Revolving Credit Facility [Member] | PNC $150 Million Credit Facility [Member] | PNC Bank, National Association [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amounts outstanding | 57.3 | 57.3 | 0 | |||
Amount borrowed | $ 57.7 | $ 58.6 | $ 57.7 | $ 58.6 | ||
Number of days borrowed | 91 days | 91 days | 179 days | 179 days | ||
Weighted-average interest rate | 2.68% | 1.78% | 2.61% | 1.73% | ||
Weighted-average amount borrowed | $ 57.3 | $ 57.8 | $ 56.6 | $ 56.8 | ||
Standby Letters of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 67.8 | 67.8 | 56.8 | |||
Amounts outstanding | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | Standby Letters of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Expiration date | Apr. 1, 2019 | |||||
Maximum [Member] | Standby Letters of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Expiration date | Jul. 1, 2020 |
Short-term Financing (Descripti
Short-term Financing (Description of Credit Facilities) (Details) $ in Millions | 6 Months Ended | |
Nov. 30, 2018USD ($) | [1] | |
Paychex of New York, LLC [Member] | JP Morgan Chase Bank, N.A. [Member] | JPM $1 Billion Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Date Entered | Aug. 5, 2015 | [2] |
Expiration Date | Aug. 5, 2020 | [2] |
Maximum Amount Available | $ 1,000 | [2] |
Paychex of New York, LLC [Member] | JP Morgan Chase Bank, N.A. [Member] | JPM $500 Million Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Date Entered | Aug. 17, 2017 | [2] |
Expiration Date | Aug. 17, 2022 | [2] |
Maximum Amount Available | $ 500 | [2] |
Paychex Advance, LLC [Member] | PNC Bank, National Association [Member] | PNC $150 Million Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Date Entered | Mar. 17, 2016 | |
Expiration Date | Mar. 17, 2020 | |
Maximum Amount Available | $ 150 | |
[1] | Borrower is a wholly owned subsidiary of the Company. | |
[2] | JP Morgan Chase Bank, N.A. ("JPM") acts as the administrative agent for this syndicated credit facility. |
Short-term Financing (Credit Fa
Short-term Financing (Credit Facility Amount Borrowed) (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
JPM $1 Billion Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Number of days borrowed | 4 days | 6 days | 10 days | 19 days |
Maximum amount borrowed | $ 483 | $ 700 | $ 483 | $ 700 |
Weighted-average amount borrowed | $ 389.8 | $ 445.8 | $ 285.7 | $ 331.6 |
Weighted-average interest rate | 5.12% | 4.25% | 5.06% | 4.24% |
JPM $500 Million Credit Facility [Member] | JP Morgan Chase Bank, N.A. [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Number of days borrowed | 3 days | 20 days | 7 days | 20 days |
Maximum amount borrowed | $ 135.5 | $ 400 | $ 223 | $ 400 |
Weighted-average amount borrowed | $ 83 | $ 215.8 | $ 111.8 | $ 215.8 |
Weighted-average interest rate | 5.25% | 2.84% | 5.07% | 2.84% |
PNC $150 Million Credit Facility [Member] | PNC Bank, National Association [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Number of days borrowed | 91 days | 91 days | 179 days | 179 days |
Maximum amount borrowed | $ 57.7 | $ 58.6 | $ 57.7 | $ 58.6 |
Weighted-average amount borrowed | $ 57.3 | $ 57.8 | $ 56.6 | $ 56.8 |
Weighted-average interest rate | 2.68% | 1.78% | 2.61% | 1.73% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | May 31, 2018 |
Commitments and Contingencies [Abstract] | ||
Commitments to purchase capital assets | $ 4.4 | $ 6.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 23.80% | 34.80% | 24.10% | 34.40% |
Net diluted earnings per share related to employee stock-based compensation payments | $ 0.01 | $ 0.01 | $ 0.02 | |
Maximum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Net diluted earnings per share related to employee stock-based compensation payments | $ 0.01 |