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Paychex, Inc. Reports Second Quarter Results

December 18, 2019 GMT

ROCHESTER, N.Y.--(BUSINESS WIRE)--Dec 18, 2019--

Paychex, Inc. (“Paychex,” “we,” “our,” or “us”) (Nasdaq:PAYX) today announced total revenue of $990.7 million for the three months ended November 30, 2019 (the “second quarter”), an increase of 15% from $858.9 million for the same period last year. Oasis Outsourcing Group Holdings, L.P. (“Oasis”), acquired in December 2018, contributed approximately 9% to the growth in total revenue compared to the same period last year. Net income increased 10% to $258.7 million, and diluted earnings per share increased 11% to $0.72 per share for the second quarter. Adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, each increased 8% to $253.8 million and $0.70 per share, respectively, for the second quarter.

Martin Mucci, President and Chief Executive Officer, commented, “During the second quarter, we delivered solid growth across our major business lines. In particular, our human resource (“HR”) outsourcing services, time and attendance solutions, and retirement services performed well.”

Mucci added, “We are heavily focused on continued innovation to meet our customers’ and their employees’ evolving needs, simplifying HR complexities and offering solutions to help them thrive and grow. We are investing in innovative technology in the areas of flexible payments, integrations, data analytics, and artificial intelligence, while still maintaining our commitment to personalized service. Our state-of-the-art technology and exceptional service distinguish us in the market as we deliver a more personalized and technology-enhanced experience for our clients and their employees.”

Management Solutions revenue was $726.7 million for the second quarter, a 6% increase compared to the same period last year. Oasis contributed slightly less than 1% to the growth in Management Solutions revenue compared to the same period last year. The remaining increase was primarily driven by increases in our client base and growth in revenue per client, which improved as a result of higher price realization and increased penetration of our suite of solutions, particularly time and attendance, retirement services, and HR outsourcing. Retirement services revenue also benefited from an increase in asset fee revenue earned on the asset value of participants’ funds.

Professional employer organization (“PEO”) and Insurance Services revenue was $244.1 million for the second quarter, an increase of 57% compared to the same period last year. Oasis contributed approximately 47% to the growth in PEO and Insurance Services revenue compared to the same period last year. In addition to the acquisition of Oasis, this increase was driven by growth in clients and client worksite employees across our PEO business. Insurance Services revenue benefited from an increase in the number of health and benefit clients and applicants, offset by the impact of softness in the workers’ compensation market as state insurance fund rates declined.

Interest on funds held for clients increased 9% to $19.9 million for the second quarter, compared to the same period last year. The increase resulted from higher realized gains, average investment balances, and average interest rates. Funds held for clients average investment balances were impacted by wage inflation and increases within our client base, offset by changes in client base mix and timing of collections and remittances.

Average investment balances and interest rates are summarized below:

 

 

For the three months ended

 

 

 

For the six months ended

 

 

 

 

November 30,

 

 

 

November 30,

 

 

$ in millions

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Average investment balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds held for clients

 

$

3,726.3

 

 

$

3,656.2

 

 

2

%

 

$

3,735.5

 

 

$

3,675.5

 

 

2

%

Corporate cash equivalents and investments

 

$

788.5

 

 

$

878.9

 

 

(10

)%

 

$

825.2

 

 

$

881.6

 

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rates earned (exclusive of net realized gains/(losses)):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds held for clients

 

 

2.0

%

 

 

2.0

%

 

 

 

 

2.1

%

 

 

1.9

%

 

 

Corporate cash equivalents and investments

 

 

1.7

%

 

 

1.4

%

 

 

 

 

1.9

%

 

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net realized gains/(losses)

 

$

0.9

 

 

$

(0.3

)

 

 

 

$

1.8

 

 

$

(0.2

)

 

 

Total expenses increased 18% to $649.0 million for the second quarter compared to the same period last year. Increases in compensation-related costs, PEO direct insurance costs, and amortization of intangible assets contributed to total expense growth for the second quarter, primarily driven by the acquisition of Oasis.

Operating income increased 11% to $341.7 million for the second quarter compared to the same period last year. Operating margin was 34.5% for the second quarter, compared to 35.8% for the same period last year. Operating margin for the second quarter was primarily impacted by the continued growth of our PEO business, including the acquisition of Oasis, and by increased investments in technology and certain business initiatives. EBITDA (1) increased 16% to $398.8 million for the second quarter and EBITDA margin (1) was 40% for the second quarter, consistent with the same period last year.

(1)

EBITDA and EBITDA margin are not U.S. GAAP measures. Please refer to the “Non-GAAP Financial Measures” section on page 4 of this press release for a discussion of these non-GAAP measures and a reconciliation to the most comparable U.S. GAAP measures of net income.

Other expense, net for the second quarter of $4.7 million includes interest expense of $8.3 million related to our long-term borrowings.

Our effective income tax rate was 23.2% for the second quarter compared to 23.8% for the same period last year. The effective income tax rates in both periods were impacted by the recognition of net discrete tax benefits related to employee stock-based compensation payments.

Year-To-Date Fiscal 2020 Highlights

The highlights for the six months ended November 30, 2019 (the “six months”) are as follows:

(1)

Adjusted net income, adjusted diluted earnings per share, and EBITDA are not U.S. GAAP measures. Please refer to the “Non-GAAP Financial Measures” section on page 4 of this press release for a discussion of these non-GAAP measures and a reconciliation to the most comparable U.S. GAAP measures of net income and diluted earnings per share.

Financial Position and Liquidity

Our financial position as of November 30, 2019 remained strong with cash, restricted cash, and total corporate investments of $707.8 million. Total short-term and long-term borrowings, net of debt issuance costs were $847.9 million as of November 30, 2019. Our positive cash flows have historically allowed us to support our business and to pay substantial dividends (approximately 80% of net income) to our stockholders. We anticipate that cash, restricted cash, and total corporate investments as of November 30, 2019, along with projected operating cash flows and available short-term financing, will support our normal business operations, capital purchases, share repurchases, and dividend payments for the foreseeable future.

Cash flows from operations were $564.6 million for the six months, an increase of 14% from the same period last year. The increase in our operating cash flows was the result of higher net income and non-cash adjustments. The increase in non-cash adjustments was primarily due to higher amortization expense of intangible assets related to the acquisition of Oasis, offset by a lower provision for deferred income taxes.

During the six months, we repurchased 2.0 million shares of our common stock for a total of $171.9 million. In the respective prior year period, we repurchased 0.5 million shares for a total of $32.8 million.

Non-GAAP Financial Measures

 

 

For the three months ended

 

 

 

 

For the six months ended

 

 

 

 

 

November 30,

 

 

 

 

November 30,

 

 

 

$ in millions

 

2019 (1)

 

2018

 

Change

 

2019

 

2018

 

Change

Net income

 

$

258.7

 

 

$

235.8

 

 

10

%

 

$

522.9

 

 

 

$

479.4

 

 

 

9

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess tax benefit related to employee stock-based compensation payments (2)

 

 

(4.9

)

 

 

(0.5

)

 

 

 

 

 

(11.5

)

 

 

 

(3.8

)

 

 

 

 

Revaluation of net deferred tax liabilities (3)

 

 

 

 

 

 

 

 

 

 

 

 

1.7

 

 

 

 

 

Total non-GAAP adjustments

 

 

(4.9

)

 

 

(0.5

)

 

 

 

 

 

(11.5

)

 

 

 

(2.1

)

 

 

 

 

Adjusted net income

 

$

253.8

 

 

$

235.3

 

 

8

%

 

$

511.4

 

 

 

$

477.3

 

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.72

 

 

$

0.65

 

 

11

%

 

$

1.45

 

 

 

$

1.33

 

 

 

9

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess tax benefit related to employee stock-based compensation payments (2)

 

 

(0.01

)

 

 

 

 

 

 

 

(0.03

)

 

 

 

(0.01

)

 

 

 

 

Revaluation of net deferred tax liabilities (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-GAAP adjustments

 

 

(0.01

)

 

 

 

 

 

 

 

(0.03

)

 

 

 

(0.01

)

 

 

 

 

Adjusted diluted earnings per share

 

$

0.70

 

 

$

0.65

 

 

8

%

 

$

1.42

 

 

 

$

1.32

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

258.7

 

 

$

235.8

 

 

10

%

 

$

522.9

 

 

 

$

479.4

 

 

 

9

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense/(income), net

 

 

6.8

 

 

 

(2.0

)

 

 

 

 

 

12.6

 

 

 

 

(4.3

)

 

 

 

 

Income taxes

 

 

78.3

 

 

 

73.5

 

 

 

 

 

 

158.4

 

 

 

 

152.5

 

 

 

 

 

Depreciation and amortization expense

 

 

55.0

 

 

 

36.8

 

 

 

 

 

 

107.9

 

 

 

 

72.7

 

 

 

 

 

Total non-GAAP adjustments

 

 

140.1

 

 

 

108.3

 

 

 

 

 

 

278.9

 

 

 

 

220.9

 

 

 

 

 

Earnings before interest, taxes, depreciation and amortization

 

$

398.8

 

 

$

344.1

 

 

16

%

 

$

801.8

 

 

 

$

700.3

 

 

 

14

%

(1)

The calculation of the impact of non-GAAP adjustments on diluted earnings per share is performed on each line independently. The table may not add down by +/- $0.01 due to rounding.

(2)

Net tax windfall benefits related to employee stock-based compensation payments recognized in income taxes. This item is subject to volatility and will vary based on employee decisions on exercising employee stock options and fluctuations in our stock price, neither of which is within the control of management.

(3)

One-time tax charge that was recognized during the three months ended August 31, 2018 as a result of updated guidance on Internal Revenue Code Section 162(m). This event is not expected to recur.

In addition to reporting net income and diluted earnings per share, which are U.S. GAAP measures, we present adjusted net income, adjusted diluted earnings per share, EBITDA, and EBITDA margin (EBITDA as a percentage of total revenue), which are non-GAAP measures. We believe these additional measures are indicators of our core business operations performance period over period. Adjusted net income, adjusted diluted earnings per share, EBITDA, and EBITDA margin are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the Securities and Exchange Commission (“SEC”). As such, they should not be considered as a substitute for the U.S. GAAP measures of net income and diluted earnings per share, and, therefore, should not be used in isolation, but in conjunction with the U.S. GAAP measures. The use of any non-GAAP measure may produce results that vary from the U.S. GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

Outlook

Our outlook for the fiscal year ending May 31, 2020 (“fiscal 2020”), is based upon current market expectations and economic conditions continuing with no significant changes. We have updated our guidance as a result of current business trends. Our updated guidance is as follows:

Other aspects of our guidance for fiscal 2020 remain unchanged from what we provided previously.

Quarterly Report on Form 10-Q

We anticipate filing our Quarterly Report on Form 10-Q (“Form 10-Q”) for the second quarter within the next few days, and it will be available at our Investor Relations Page. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-Q.

Conference Call

Interested parties may access the webcast of our Earnings Release Conference Call, scheduled for December 18, 2019 at 9:30 a.m. Eastern Time, at our Investor Relations Page. The webcast will be archived for approximately one month. Our news releases, current financial information, SEC filings, and investor presentations are also accessible at our Investor Relations Page.

About Paychex

Paychex, Inc. (Nasdaq:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex serves approximately 670,000 payroll clients as of May 31, 2019 across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting paychex.com and stay connected on Twitter and LinkedIn.

Cautionary Note Regarding Forward-Looking Statements Pursuant to the U.S. Private Securities Litigation Reform Act of 1995

Certain written and oral statements made by us may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as “we expect,” “expected to,” “estimates,” “estimated,” “overview,” “current outlook,” “guidance,” “we look forward to,” “would equate to,” “projects,” “projections,” “projected,” “projected to be,” “anticipates,” “anticipated,” “we believe,” “believes,” “could be,” “targeting,” and other similar words or phrases. Examples of forward-looking statements include, among others, statements we make regarding operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to our outlook, revenue growth, earnings, earnings-per-share growth, or similar projections.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, many of which are outside our control. Our actual results and financial conditions may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance upon any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

Any of these factors, as well as such other factors as discussed in our SEC filings, could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known as of the date of this press release, and any forward-looking statement made by us in this document speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to update these forward-looking statements after the date of issuance of this press release to reflect events or circumstances after such date, or to reflect the occurrence of unanticipated events.

PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In millions, except per share amounts)

 

 

For the three months ended

 

 

 

 

For the six months ended

 

 

 

 

 

November 30,

 

 

 

 

November 30,

 

 

 

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management Solutions

 

$

726.7

 

$

685.4

 

6

%

 

$

1,451.2

 

$

1,373.1

 

6

%

PEO and Insurance Services

 

 

244.1

 

 

155.2

 

57

%

 

 

491.1

 

 

313.2

 

57

%

Total service revenue

 

 

970.8

 

 

840.6

 

15

%

 

 

1,942.3

 

 

1,686.3

 

15

%

Interest on funds held for clients (1)

 

 

19.9

 

 

18.3

 

9

%

 

 

40.4

 

 

35.4

 

14

%

Total revenue

 

 

990.7

 

 

858.9

 

15

%

 

 

1,982.7

 

 

1,721.7

 

15

%

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

323.4

 

 

264.9

 

22

%

 

 

648.8

 

 

530.4

 

22

%

Selling, general and administrative expenses

 

 

325.6

 

 

286.8

 

14

%

 

 

643.1

 

 

563.8

 

14

%

Total expenses

 

 

649.0

 

 

551.7

 

18

%

 

 

1,291.9

 

 

1,094.2

 

18

%

Operating income

 

 

341.7

 

 

307.2

 

11

%

 

 

690.8

 

 

627.5

 

10

%

Other (expense)/income, net (1)

 

 

(4.7)

 

 

2.1

 

n/m

 

 

 

(9.5)

 

 

4.4

 

n/m

 

Income before income taxes

 

 

337.0

 

 

309.3

 

9

%

 

 

681.3

 

 

631.9

 

8

%

Income taxes

 

 

78.3

 

 

73.5

 

7

%

 

 

158.4

 

 

152.5

 

4

%

Net income

 

$

258.7

 

$

235.8

 

10

%

 

$

522.9

 

$

479.4

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.72

 

$

0.66

 

9

%

 

$

1.46

 

$

1.34

 

9

%

Diluted earnings per share

 

$

0.72

 

$

0.65

 

11

%

 

$

1.45

 

$

1.33

 

9

%

Weighted-average common shares outstanding

 

 

358.1

 

 

359.1

 

 

 

 

 

358.4

 

 

359.1

 

 

 

Weighted-average common shares outstanding, assuming dilution

 

 

360.6

 

 

361.5

 

 

 

 

 

361.1

 

 

361.5

 

 

 

(1)

Further information on interest on funds held for clients and other (expense)/income, net, and the short- and long-term effects of changing interest rates can be found in our filings with the SEC, including our Quarterly Reports on Form 10-Q and our Annual Report on Form 10-K, as applicable, under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and subheadings “Results of Operations” and “Market Risk Factors.” These filings are accessible at www.paychex.com.

 

n/m – not meaningful

PAYCHEX, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except per share amounts)

 

 

November 30,

 

May 31,

 

 

2019

 

2019

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

600.6

 

$

673.6

Restricted cash

 

 

53.0

 

 

50.6

Corporate investments

 

 

34.4

 

 

39.0

Interest receivable

 

 

29.0

 

 

27.4

Accounts receivable, net of allowance for doubtful accounts

 

 

464.9

 

 

420.5

PEO unbilled receivables, net of advance collections

 

 

411.7

 

 

406.3

Prepaid income taxes

 

 

58.6

 

 

22.6

Prepaid expenses and other current assets

 

 

240.9

 

 

233.9

Current assets before funds held for clients

 

 

1,893.1

 

 

1,873.9

Funds held for clients

 

 

3,734.8

 

 

3,803.8

Total current assets

 

 

5,627.9

 

 

5,677.7

Long-term restricted cash

 

 

9.7

 

 

6.5

Long-term corporate investments

 

 

10.1

 

 

10.2

Property and equipment, net of accumulated depreciation

 

 

401.7

 

 

408.7

Operating lease right-of-use assets, net of accumulated amortization

 

 

119.2

 

 

Intangible assets, net of accumulated amortization

 

 

359.7

 

 

399.1

Goodwill

 

 

1,785.8

 

 

1,782.6

Long-term deferred costs

 

 

359.7

 

 

366.3

Other long-term assets

 

 

27.9

 

 

24.9

Total assets

 

$

8,701.7

 

$

8,676.0

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Accounts payable

 

$

76.3

 

$

75.9

Accrued corporate compensation and related items

 

 

121.5

 

 

146.4

Accrued worksite employee compensation and related items

 

 

568.3

 

 

578.6

Short-term borrowings

 

 

51.3

 

 

Deferred revenue

 

 

42.2

 

 

40.3

Other current liabilities

 

 

268.0

 

 

219.5

Current liabilities before client fund obligations

 

 

1,127.6

 

 

1,060.7

Client fund obligations

 

 

3,696.3

 

 

3,784.3

Total current liabilities

 

 

4,823.9

 

 

4,845.0

Accrued income taxes

 

 

30.6

 

 

27.3

Deferred income taxes

 

 

226.8

 

 

223.1

Long-term borrowings, net of debt issuance costs

 

 

796.6

 

 

796.4

Operating lease liabilities

 

 

100.1

 

 

13.0

Other long-term liabilities

 

 

154.3

 

 

151.7

Total liabilities

 

 

6,132.3

 

 

6,056.5

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Common stock, $0.01 par value; Authorized: 600.0 shares;
Issued and outstanding: 358.4 shares as of November 30, 2019
and 359.3 shares as of May 31, 2019

 

 

3.6

 

 

3.6

Additional paid-in capital

 

 

1,252.8

 

 

1,206.3

Retained earnings

 

 

1,301.4

 

 

1,409.5

Accumulated other comprehensive income

 

 

11.6

 

 

0.1

Total stockholders’ equity

 

 

2,569.4

 

 

2,619.5

Total liabilities and stockholders’ equity

 

$

8,701.7

 

$

8,676.0

PAYCHEX, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions )

 

 

For the six months ended

 

 

November 30,

 

 

2019

 

2018 (1)

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income

 

$

522.9

 

$

479.4

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization on property and equipment and intangible assets

 

 

107.9

 

 

72.7

Amortization of premiums and discounts on available-for-sale securities, net

 

 

20.4

 

 

27.7

Amortization of deferred contract costs

 

 

92.4

 

 

89.5

Stock-based compensation costs

 

 

23.8

 

 

22.8

(Benefit)/provision for deferred income taxes

 

 

(2.7)

 

 

10.9

Provision for allowance for doubtful accounts

 

 

3.4

 

 

1.5

Net realized (gains)/losses on sales of available-for-sale securities

 

 

(1.8)

 

 

0.2

Changes in operating assets and liabilities:

 

 

 

 

 

 

Interest receivable

 

 

(1.6)

 

 

3.6

Accounts receivable and PEO unbilled receivables, net

 

 

(53.2)

 

 

(71.6)

Prepaid expenses and other current assets

 

 

(44.5)

 

 

(26.7)

Accounts payable and other current liabilities

 

 

(14.5)

 

 

(30.2)

Deferred costs

 

 

(85.3)

 

 

(82.2)

Net change in other long-term assets and liabilities

 

 

(2.7)

 

 

(0.4)

Net change in operating lease right-of-use assets and liabilities

 

 

0.1

 

 

Net cash provided by operating activities

 

 

564.6

 

 

497.2

INVESTING ACTIVITIES

 

 

 

 

 

 

Purchases of available-for-sale securities

 

 

(13,537.8)

 

 

(21,248.8)

Proceeds from sales and maturities of available-for-sale securities

 

 

14,167.1

 

 

21,364.3

Purchases of property and equipment

 

 

(59.9)

 

 

(60.8)

Purchases of other assets

 

 

(4.2)

 

 

(1.0)

Net cash provided by investing activities

 

 

565.2

 

 

53.7

FINANCING ACTIVITIES

 

 

 

 

 

 

Net change in client fund obligations

 

 

(88.0)

 

 

(1,017.6)

Net proceeds from short-term borrowings

 

 

51.3

 

 

57.3

Dividends paid

 

 

(444.3)

 

 

(402.7)

Repurchases of common shares

 

 

(171.9)

 

 

(32.8)

Activity related to equity-based plans

 

 

7.9

 

 

12.2

Net cash used in financing activities

 

 

(645.0)

 

 

(1,383.6)

Net change in cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

484.8

 

 

(832.7)

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

 

 

935.2

 

 

2,300.5

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

 

$

1,420.0

 

$

1,467.8

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, restricted cash and restricted cash
equivalents to the Consolidated Balance Sheets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

600.6

 

$

510.6

Restricted cash

 

 

62.7

 

 

Restricted cash and restricted cash equivalents included in funds held for clients

 

 

756.7

 

 

957.2

Total cash, cash equivalents, restricted cash and restricted cash equivalents

 

$

1,420.0

 

$

1,467.8

(1)

Amounts have been adjusted to reflect adoption of Accounting Standards Update No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).”

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PUB: 12/18/2019 08:30 AM/DISC: 12/18/2019 08:30 AM

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