Paychex 2012 Annual Report Download - page 25

Software Maintenance and Development
The ever-changing mandates of federal, state, and local tax and regulatory agencies require us to regularly
update the proprietary software we utilize to provide payroll and human resource services to our clients. We are
continually engaged in developing enhancements to and the maintenance of our various software platforms to
meet the changing requirements of our clients and the marketplace.
In fiscal 2010, we completed implementation of an enhanced platform for our core payroll processing
capability, which allows us to leverage efficiencies in our processes and continue to provide excellent customer
service. Our Paychex Next Generation platform, with its suite of innovative products, is expanding these
enhancements to our additional service offerings over the next few years.
Employees
As of May 31, 2012, we employed approximately 12,400 people. None of our employees were covered by
collective bargaining agreements.
Intellectual Property
We own or license and use a number of trademarks, trade names, copyrights, service marks, trade secrets,
computer programs and software, and other intellectual property rights. Taken as a whole, our intellectual
property rights are material to the conduct of our business. Where it is determined to be appropriate, we take
measures to protect our intellectual property rights, including, but not limited to, confidentiality/non-disclosure
agreements or policies with employees, vendors, and others; license agreements with licensees and licensors of
intellectual property; and registration of certain trademarks. We believe that the “Paychex” name, trademark, and
logo are of material importance to us.
Seasonality
There is no significant seasonality to our business. However, during our third fiscal quarter, which ends in
February, the number of new payroll clients, new retirement services clients, and new Paychex HR Solutions
worksite employees tends to be higher than during the rest of the fiscal year, primarily because a majority of new
clients begin using our services at the beginning of a calendar year. In addition, calendar year-end transaction
processing and client funds activity are traditionally higher during our third fiscal quarter due to clients paying
year-end bonuses and requesting additional year-end services. Historically, as a result of these factors, our total
revenue has been slightly higher in our third fiscal quarter, with greater sales commission expenses also reported
in the third quarter.
Other
We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Therefore, we file periodic reports, proxy statements, and other information with the SEC.
Such reports may be read and copied at the SEC’s Public Reference Room at 100 F Street NE, Washington, D.C.
20549. Information regarding the operation of the Public Reference Room may be obtained by calling the SEC at
(800) SEC-0330. The SEC also maintains a website (www.sec.gov) that includes our reports, proxy statements,
and other information.
Information about our services and products, stockholder information, press releases, and filings with the
SEC can be found on our website at www.paychex.com. Our Form 10-Ks, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K, and other SEC filings, as well as any amendments to such reports and filings, are
made available, free of charge, under the Corporate tab, in the Investor Relations section of our website as soon
as reasonably practical after such material is filed with, or furnished pursuant to Section 13(a) or 15(d) of the
Exchange Act to the SEC. Also, copies of our Annual Report to Stockholders and Proxy Statement, to be issued
in connection with our 2012 Annual Meeting of Stockholders, will be made available, free of charge, upon
written request submitted to Paychex, Inc., c/o Corporate Secretary, 911 Panorama Trail South, Rochester, New
York 14625-2396.
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