Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 13

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 2
Chunk 13
---
    119.8

    7
     
    %

    388.8

    341.5

    14
     
    %

    Depreciation and amortization

    43.1

    44.8

    (4
    )
    %

    123.8

    130.9

    (5
    )
    %

    Acquisition-related costs

    16.7

    —

    n/m

    16.7

    —

    n/m

    Other expenses

    174.0

    163.3

    7
     
    %

    477.1

    449.0

    6
     
    %

    Total expenses
     
    $
     
    817.2

    $
     
    789.5

    4
     
    %
     
    $
     
    2,367.8

    $
     
    2,290.9

    3
     
    %

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

n/m — not meaningful

Total expenses increased 4% to $817.2 million for the third quarter and 3% to $2.4 billion for the nine months, compared to the prior year periods. Total expenses increased as a result of the following:

•PEO direct insurance costs: $127.7 million for the third quarter and $388.8 million for the nine months, reflecting increases of 7% and 14% respectively, related to growth in average worksite employees and PEO insurance revenues.

•Acquisition-related costs: $16.7 million in the third quarter and nine months, primarily reflecting third-party professional service fees related to the pending Paycor acquisition.

•Other expenses: $174.0 million for the third quarter and $477.1 million for the nine months, reflecting increases of 7% and 6% respectively, primarily related to continued investment in technology, general cost increases to support business growth, and the benefit from a sales tax audit recognized in the three-month period ended February 29, 2024. In addition, the increase for the nine months included continued investment in sales and marketing. 

Total expenses, excluding acquisition-related costs noted above, increased 1% to $800.5 million for the third quarter and 3% to $2.4 billion for the nine months, compared to the