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Business Combinations (Tables) | 3 Months Ended
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Aug. 31, 2025
Business Combination [Abstract] |
Summary of Purchase Price Allocation | Purchase Price Allocation The purchase price allocation as of the acquisition date is subject to change as additional information about the fair values of assets acquired and liabilities assumed becomes available. These adjustments will be finalized no later than one year from the acquisition date. During the three months ended August 31, 2025, the Company adjusted its purchase price allocation, which increased goodwill $5.8 million, primarily resulting from the write-down of a building by $4.9 million, net of deferred taxes of $1.9 million as a result of an updated valuation. The impact of these changes on previously reported earnings was not material.
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 |  |  |  | 29.3 |
Funds held for clients |  |  |  | 1,288.2 |
Property and equipment |  |  |  | 27.6 |
Operating lease right-of-use assets |  |  |  | 9.1 |
Intangible assets (new fair value) |  |  |  | 1,776.5 |
Other long-term assets |  |  |  | 1.9 |
Total assets |  | $ |  | 3,329.6 |
Liabilities Assumed |  |  |  |
Current liabilities |  | $ |  | 136.3 |
Client funds obligation |  |  |  | 1,288.9 |
Deferred income taxes |  |  |  | 342.4 |
Other long-term liabilities |  |  |  | 69.7 |
Total Liabilities |  | $ |  | 1,837.3 |
Fair value of purchase consideration |  |  |  | 4,085.7 |
Less: fair value of net assets |  |  |  | 1,492.3 |
Goodwill |  | $ |  | 2,593.4 |
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 three months ended August 31, 2024, as if the acquisition had occurred on June 1, 2023:
|  | Three months ended |
In millions |  | August 31, 2024 |
Revenues |  | $ |  | 1,486.0 |
Net income |  | $ |  | 345.6 |

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