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Business Combinations (Tables) | 12 Months Ended
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May 31, 2025
Business Combinations [Abstract] |
Summary of the Components of the Purchase Consideration | The following table summarizes the components of the purchase consideration:
In millions, except per share amounts |  |  |  |
Number of shares of Paycor common stock outstanding (1) |  |  |  | 180.5 |
Cash consideration (per share of common stock) |  | $ |  | 22.50 |
Total cash consideration |  | $ |  | 4,060.6 |
Fair value of Paycor equity awards replaced by Paychex for pre-combination services (2) |  | $ |  | 25.1 |
Total equity consideration |  | $ |  | 25.1 |
Total purchase consideration |  | $ |  | 4,085.7 |
(1) Represents outstanding shares of Paycor common stock as of April 11, 2025. (2) Represents the fair value of Paycor's stock-based compensation awards attributable to pre-combination services. ASC 805 requires that the fair value of replacements awards attributable to pre-combination service be included in consideration transferred.
Summary of Purchase Price Allocation | Purchase Price Allocation
In millions |  |  |  |
Total purchase price |  | $ |  | 4,085.7 |
Assets Acquired |  |  |  |
Cash and cash equivalents |  | $ |  | 168.8 |
Restricted cash |  |  |  | 0.0 |
Interest receivable |  |  |  | 0.7 |
Accounts receivable |  |  |  | 26.5 |
Prepaid income taxes |  |  |  | 1.0 |
Prepaid expenses and other current assets |  |  |  | 30.0 |
Funds held for clients |  |  |  | 1,288.4 |
Property and equipment |  |  |  | 34.4 |
Operating lease right-of-use assets |  |  |  | 9.1 |
Intangible assets (new fair value) |  |  |  | 1,776.5 |
Other long-term assets |  |  |  | 1.9 |
Total assets |  | $ |  | 3,337.3 |
Liabilities Assumed |  |  |  |
Current liabilities |  | $ |  | 136.3 |
Client funds obligation |  |  |  | 1,288.9 |
Deferred income taxes |  |  |  | 344.3 |
Other long-term liabilities |  |  |  | 69.7 |
Total Liabilities |  | $ |  | 1,839.2 |
Fair value of purchase consideration |  |  |  | 4,085.7 |
Less: fair value of net assets |  |  |  | 1,498.1 |
Goodwill |  | $ |  | 2,587.6 |
Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and their Estimated Useful Lives | The preliminary fair values allocated to the identifiable intangible assets and their preliminary estimated useful lives are as follows:
In millions |  |  |  |  |  |  |
Identifiable Intangible Assets |  |  | Estimated useful life (years) |  | Estimated fair value |
Developed technology |  |  | 7 years |  | $ |  | 367.0 |
Customer relationships |  |  | 12 years |  |  |  | 1,118.0 |
Trade name and trademarks |  |  | 15 years |  |  |  | 234.0 |
Naming rights |  |  | 13.4 years(1) |  |  |  | 57.5 |
Total |  |  |  |  | $ |  | 1,776.5 |
(1) Naming rights are amortized over the remaining term of the underlying contract.
Summary of Unaudited Pro Forma Financial Information | The following unaudited pro forma consolidated results of operations are provided for illustrative purposes only and present the estimated unaudited pro forma combined results of Paychex and Paycor for years ended May 31, 2025 and 2024, as if the acquisition had occurred on June 1, 2023:
|  | Year ended May, |
In millions |  | 2025 |  |  | 2024 |
Revenues |  | $ |  | 6,206.7 |  |  | $ |  | 5,933.2 |
Net income |  | $ |  | 1,580.2 |  |  | $ |  | 1,405.4 |

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- Definition Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482665/350-30-50-1 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482665/350-30-50-1 + Details
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- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 + Details
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