Paychex 2012 Annual Report Download - page 80

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Schedule II — Valuation and Qualifying Accounts
PAYCHEX, INC.
CONSOLIDATED FINANCIAL STATEMENT SCHEDULE
FOR THE YEAR ENDED MAY 31,
In millions
Description
Balance as of
beginning
of fiscal year
Additions
charged to
expenses
(Deductions from)/
additions to other
accounts(1)
Costs and
deductions(2)
Balance as
of end
of fiscal year
2012
Allowance for doubtful accounts .... $2.1 $1.2 $ — $2.1 $1.2
Reserve for client fund losses ....... $3.1 $2.3 $(0.7) $2.6 $2.1
2011
Allowance for doubtful accounts .... $1.9 $1.8 $ 0.4 $2.0 $2.1
Reserve for client fund losses ....... $2.6 $1.9 $ 1.3 $2.7 $3.1
2010
Allowance for doubtful accounts .... $4.0 $2.6 $ — $4.7 $1.9
Reserve for client fund losses ....... $3.2 $3.5 $ — $4.1 $2.6
(1) Amounts related to business acquisitions.
(2) Uncollectible amounts written off, net of recoveries. For fiscal 2010, this column includes the amount
disposed of with the divestiture of Stromberg time and attendance operations, an immaterial component of
the Company.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Disclosure Controls and Procedures and Internal Control Over Financial Reporting: Disclosure
controls and procedures are designed with the objective of ensuring that information required to be disclosed in
the Company’s reports filed under the Exchange Act, such as this report, is recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are
also designed with the objective of ensuring that such information is accumulated and communicated to the
Company’s management, including the Company’s principal executive officer and principal financial officer, as
appropriate, to allow timely decisions regarding required disclosure.
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures: As of the end of the
period covered by this report, the Company carried out an evaluation, under the supervision and with the
participation of the Company’s principal executive officer and principal financial officer, of the effectiveness of
disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on
such evaluation, the Company’s principal executive officer and principal financial officer have concluded that as
of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.
Changes in Internal Controls Over Financial Reporting: The Company also carried out an evaluation of
the internal control over financial reporting to determine whether any changes occurred during the period
covered by this report. Based on such evaluation, there have been no changes in the Company’s internal controls
over financial reporting that occurred during the Company’s most recently completed fiscal quarter ended
May 31, 2012, that materially affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.
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