Company: PAYC
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-024136
Chunk: 185

Company: Paycom Software, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 185
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 on the consolidated financial statements. Auditing the estimated life of the Company’s client relationships required significant auditor judgment in planning and executing the appropriate audit procedures.

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Our audit procedures related to the estimated life of the Company’s client relationships included the following, among others. We tested the design and operating effectiveness of controls relating to management’s annual review of the reasonableness of the estimated life of a client relationship, including controls over the completeness of key inputs in the calculation and the review of the methodology applied by the Company’s third-party specialist. With the assistance of a valuation specialist, we tested the methodologies used in determining the appropriateness of the estimated life by evaluating the relationship between the average life of a client and the associated attrition rate for reasonableness. This included reperforming the calculation and verifying that all provided historical data was utilized in the analysis. We also performed procedures over the data utilized in the analysis, including comparing a sample of historical data to previously audited information.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2009.

Oklahoma City, Oklahoma

February 20, 2025

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Paycom Software, Inc. 

Consolidated Balance Sheets

(in millions, except per share amounts)

    December 31, 2024

    December 31, 2023

    Assets

    Current assets:

    Cash and cash equivalents
     
    $
    402.0

    $
    294.0

    Accounts receivable

    39.2

    16.4

    Prepaid expenses

    44.4

    37.6

    Inventory

    1.4

    1.4

    Income tax receivable

    11.9

    18.4

    Deferred contract costs

    140.4

    118.2

    Current assets before funds held for clients

    639.3

    486.0

    Funds held for clients

    3,665.5

    2,327.4

    Total current assets

    4,304.8

    2,813.4

    Property and equipment, net

    561.4

    498.2

    Intangible assets, net

    46.2

    50.1

    Goodwill

    51.9

    51.9

    Long