XML 37 R21.htm IDEA: XBRL DOCUMENT
v3.21.2

Long-Term Financing | 12 Months Ended
--- | ---
May 31, 2021
Financing [Abstract] |
Long-Term Financing | Note N — Long-term Financing Long-term debt, at amortized cost, consisted of the following as of:
|  | May 31,
In millions |  | 2021 |  | 2020
Senior Notes, Series A |  | $ | 400.0 |  | $ | 400.0
Senior Notes, Series B |  |  | 400.0 |  |  | 400.0
Total long-term borrowings |  |  | 800.0 |  |  | 800.0
Less: Debt issuance costs, net of accumulated amortization |  |  | (2.7) |  |  | (3.2)
Long-term borrowings, net of debt issuance costs |  | $ | 797.3 |  | $ | 796.8
Certain information related to the Senior Notes, Series A and Senior Notes, Series B (collectively the “Notes”) issued pursuant to the Note Purchase and Guarantee Agreement (the “Agreement”) for fiscal 2021 and fiscal 2020 are as follows:
|  |  | Senior Notes | Senior Notes
|  |  | Series A | Series B
Stated interest rate |  |  | 4.07% | 4.25%
Effective interest rate |  |  | 4.15% | 4.31%
Interest rate type |  |  | Fixed | Fixed
Interest payment dates |  |  | Semi-annual, in arrears | Semi-annual, in arrears
Principal payment dates |  |  | March 13, 2026 | March 13, 2029
Note type |  |  | Unsecured | Unsecured
The effective interest rates for each note series includes the interest on the note and amortization of debt issuance costs. Proceeds from the Notes were used to pay off $800.0 million in short-term borrowings under the Company’s JPM credit facilities used to temporarily finance the acquisition of Oasis in fiscal 2019. Payment of all amounts due with respect to the Notes and performance under the Agreement is guaranteed by the Company, Paychex of New York LLC, and certain other subsidiaries of the Company. The Company may, at its option, prepay at any time all, or any part of, the Notes, subject to certain conditions as described in the Agreement. The Agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants that are usual and customary for such arrangements. The Company was in compliance with all these covenants as of May 31, 2021.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration