Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 17

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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 solutions, share repurchases, dividend payments, and the servicing of long-term debt for the foreseeable future.

For client funds liquidity, we have the ability to borrow on our unsecured credit facilities or use corporate liquidity when necessary to meet short-term funding needs related to client fund obligations. Historically, we have borrowed, typically on an overnight basis, to settle short-term client fund obligations, rather than liquidate previously collected client funds invested in our long-term AFS portfolio. We believe that our investments in an unrealized loss position as of February 28, 2025 were not impaired due to increased credit risk or other valuation concerns, nor has any event occurred subsequent to that date to indicate any change in our assessment. We do not intend to sell these investments until recovery of their amortized cost basis or maturity and further believe that it is not more-than-likely that we would be required to sell these investments prior to that time.

Financing

Short-term financing: We maintain committed and unsecured credit facilities and irrevocable letters of credit as part of our normal and recurring business operations. The purpose of these credit facilities is to meet short-term funding requirements, finance working capital needs, and for general corporate purposes. We typically borrow on an overnight or short-term basis under our credit facilities. Refer to Note M of the Notes to Consolidated Financial Statements contained in Item 8 of our Form 10-K for fiscal 2024 for further discussion of our credit facilities.

Details of our credit facilities as of February 28, 2025 were as follows:

    Maximum

    February 28, 2025

    Amount

    Outstanding

    Available

    $ in millions
     
    Expiration Date

    Available

    Amount

    Amount

    Credit facilities:

    JP Morgan Chase Bank, N.A. (“JPM”)
     
    April 12, 2029
     
    $
     
    1,000.0

    $
     
    -

    $
     
    1,000.0

    JPM
     
    September 17, 2026
     
    $
     
    750.0

    -

    750.0

    PNC Bank, National Association (“PNC”)
     
    February 6, 2026
     
    $
     
    250.0

    17.6

    232.4

    Total Lines of Credit Outstanding and Available

    $