Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 22

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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 in cash, restricted cash, and equivalents
     
    $
     
    496.3

    $
     
    2,398.0

    $
     
    (1,901.7
    )

    Cash dividends per common share
     
    $
     
    2.94

    $
     
    2.67

The changes in our cash flow for the nine months compared to the prior year period were primarily the result of the following key drivers:

Operating Cash Flow Activities

Fiscal 2025

•Net income attributable to the reasons discussed in the “Results of Operations” section of this Item 2; and

•Net changes in PEO assets and liabilities as a result of the timing of cash collected and the settlement of payroll taxes; offset by

•A net decrease in refunds owed to our PEO clients related to tax benefits allowed under the Coronavirus Aid, Relief, and Economic Security Act.

Fiscal 2024

•Net income attributable to the reasons discussed in the “Results of Operations” section of this Item 2; 

•Net changes in PEO assets and liabilities as a result of the timing of cash collected and the settlement of payroll taxes; and

•A net increase in refunds owed to our PEO clients related to tax benefits allowed under the Coronavirus Aid, Relief, and Economic Security Act.  

Investing Cash Flow Activities

Fiscal 2025

•Net purchases of short-term accounts receivable due to an increase in our client base, the timing of cash collections on outstanding receivables and cash settlement of the related reserve; and

•Cash used to develop and enhance our client facing internal-use software and the acquisition of third-party customer lists; offset by

•Net sales of AFS securities related to investment in our long-term portfolio.

Fiscal 2024

•Cash used for the acquisition of Alterna Capital Solutions, LLC and settlement of its outstanding debt at closing. Refer to Note D of the Notes to Consolidated Financial Statements for additional discussion of this transaction;

•Cash used to develop and enhance our client facing internal-use software and the acquisition of third-party customer lists; and

•Net purchase of short-term accounts receivable due to an increase in our client base, and funding to existing client base, and the timing of net cash collections; offset by

30 

•Net sales from AFS securities primarily due to a shift from investing in VRDNs to reinvesting in cash and cash equivalents due to more favorable