Paychex 2015 Annual Report Download - page 85

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(2) Total net realized gains on the combined funds held for clients and corporate investment portfolios.
(3) With the introduction of the new health insurance offering within the PEO during fiscal 2014, the Company
began classifying PEO direct costs related to certain benefit plans where the Company retains risk as
operating expenses rather than as a reduction in service revenue. As a result, the amounts reported for service
revenue and total revenue for the first through third quarters of fiscal 2014 differ from that reported in the
Company’s Quarterly Reports on Form 10-Q (“Form 10-Q”). There was no impact to operating income from
this change. The correction for the PEO direct cost adjustment was not material to any prior interim period in
fiscal 2014. Service revenue, as reported in the Company’s Form 10-Qs was $597.9 million, $600.5 million,
and $626.0 million for the first, second, and third fiscal quarters of fiscal 2014, respectively. Total revenue,
as reported in the Company’s Form 10-Qs was $607.9 million, $610.5 million, and $636.5 million for the
first, second, and third fiscal quarters of fiscal 2014, respectively.
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