Paychex 2015 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2015 Paychex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
equivalents during the vesting period. These awards vest 20% per annum over five years. The fair value of RSUs
is equal to the closing market price of the underlying common stock as of the date of grant, adjusted for the
present value of expected dividends over the vesting period.
The following table summarizes RSU activity for the year ended May 31, 2015:
In millions, except per share amounts RSUs
Weighted-average
grant-date
fair value per
share
Weighted-average
remaining vesting
period (years)
Aggregate
intrinsic value(1)
Nonvested as of May 31, 2014 ....... 1.7 $30.52
Granted ........................ 0.7 $36.64
Vested ......................... (0.5) $28.11
Forfeited ....................... (0.1) $32.60
Nonvested as of May 31, 2015 ....... 1.8 $33.57 3.0 $88.8
(1) Intrinsic value for RSUs is the market price of the underlying stock as of May 31, 2015.
Other information pertaining to RSUs is as follows:
Year ended May 31,
In millions, except per share amounts 2015 2014 2013
Weighted-average grant-date fair value of RSUs granted ............. $36.64 $36.37 $28.59
Total intrinsic value of RSUs vested ............................. $ 21.7 $ 18.3 $ 15.5
Total grant-date fair value of RSUs vested ........................ $ 14.8 $ 12.1 $ 13.4
Restricted stock awards: The Board has approved grants of restricted stock awards to the Company’s
officers and outside directors. All shares underlying awards of restricted stock are restricted in that they are not
transferable until they vest. The recipients of the restricted stock have voting rights and earn dividends, which are
paid to the recipient at the time the awards vest. If the recipient leaves Paychex prior to the vesting date for any
reason, the shares of restricted stock and the dividends accrued on those shares will be forfeited and returned to
Paychex.
Time-vested restricted stock awards granted to officers vest one-third per annum. Restricted stock granted to
outside directors vest on the one-year anniversary of the grant date. The fair value of restricted stock awards is
equal to the closing market price of the underlying common stock as of the date of grant and is expensed over the
requisite service period on a straight-line basis.
The following table summarizes restricted stock activity for the year ended May 31, 2015:
In millions, except per share amounts
Restricted
shares
Weighted-average
grant-date
fair value
per share
Nonvested as of May 31, 2014 ................................. 0.2 $33.55
Granted .................................................. 0.1 $41.70
Vested ................................................... (0.1) $31.79
Forfeited ................................................. — $ —
Nonvested as of May 31, 2015 ................................. 0.2 $38.99
49