Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 87

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 87
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| Excess tax benefits related to employee stock-based compensation payments(5)                       |                                         |   | (0.03 | ) |     |     |           |   |     |   | (0.03 | ) |     |     |           |   |     |   | (0.02 | ) |
| Adjusted diluted earnings per share                                                                |                                         | $ |  4.98 |   |     |     |         6 | % |     | $ |  4.72 |   |     |     |        11 | % |     | $ |  4.27 |   |

| (1) | Percentage changes are calculated based on unrounded numbers. |

| (2) | Acquisition-related costs included in Selling, general and administrative expenses include (i) $40.7 million in amortization of intangibles acquired in the acquisition of Paycor, (ii) $70.8 million in compensation costs related to the acquisition of Paycor, including replacement awards, severance, and retention and transaction bonuses, and $50.8 million in other acquisition-related costs, primarily reflecting third-party professional service fees. Acquisition-related costs included in interest expense includes $34.0 million reflecting the amortization of financing fees related to debt instruments associated with the financing of the Paycor acquisition and the excluded component of the initial fair value of the interest rate swaption contracts. |

| (3) | Cost optimization initiatives recognized in fiscal 2024 includes further reductions to our geographic footprint, reprioritization of certain technology investments, and headcount optimization. |

| (4) | 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. |

| (5) | 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. |

| (6) | Non-recurring tax benefit derived from prior years’ research and development costs incurred in the production of customer-facing software. |

In addition to reporting operating income and diluted earnings per share, which are U.S. GAAP measures, we present operating income, net of certain items and adjusted diluted earnings per share which are non-GAAPmeasures. We believe these additional measures are an indicator of our