Company: PAYC
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-024136
Chunk: 121

Company: Paycom Software, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1B
Chunk 121
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80.6

        $
        73.8

        Lease liabilities:

        Operating lease liabilities
         
        $
        20.4

        $
        19.2

        Long-term operating lease liabilities
         
        $
        63.0

        $
        56.7

      Rent expense under operating leases for the years ended December 31, 2024, 2023 and 2022 was $21.7 million, $18.1 million and $12.3 million, respectively. Cash paid for amounts relating to our operating leases was $23.2 million for the year ended December 31, 2024.Because no implicit discount rates for our leases could be readily determined, we elected to use an estimated incremental borrowing rate to determine the present value of our leases. The weighted average discount rate related to our portfolio of leases at December 31, 2024 was 5.0%. The weighted average remaining lease term for our leases was 4.4 years as of December 31, 2024.

69

Paycom Software, Inc.Notes to the Consolidated Financial Statements(tabular dollars and shares in millions, except per share and per unit amounts) 

The undiscounted cash flows for the future annual maturities of our operating lease liabilities and the reconciliation of those total undiscounted cash flows to our lease liabilities as of December 31, 2024 were as follows:

        2025
         
        $
        21.0

        2026

        21.4

        2027

        19.8

        2028

        17.7

        2029

        9.7

        Thereafter

        3.8

        Total undiscounted cash flows
         
        $
        93.4

        Present value discount

        (10.0
        )

        Lease liabilities
         
        $
        83.4

      The table above does not include any legally binding minimum lease payments for leases signed but not yet commenced. As of December 31, 2024, the present value of the operating lease liabilities that had not yet commenced was $0.5 million.

6.LONG-TERM DEBTOn July 29, 2022 (the “Facility Closing Date”), Paycom Payroll, LLC, Software, and certain other subsidiaries of Software (collectively, the “Loan Parties”) entered into a