Paychex, Inc. 11-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
(Mark One):
|
|
|
þ |
|
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2007
OR
|
|
|
o |
|
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 0-11330
|
|
|
|
A.
|
Paychex, Inc. 401(k) |
|
|
Incentive Retirement Plan |
|
|
(Full title of the Plan) |
|
|
|
|
B.
|
Paychex, Inc. |
|
|
911 Panorama Trail South |
|
|
Rochester, NY 14625 |
(Name of issuer of the securities held pursuant to the
Plan and the address of its principal executive office)
Index to Financial Statements, Schedule and Exhibits
|
|
|
|
|
Financial Statements |
|
Page No. |
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
Schedule |
|
|
|
|
|
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
Exhibits |
|
|
|
|
|
|
|
|
|
23Consent of Independent Registered Public Accounting Firm |
|
|
14 |
|
EX-23 |
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Committee
has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
Dated:
June 27, 2008
|
|
|
|
|
|
|
PAYCHEX, INC. 401(k) INCENTIVE RETIREMENT PLAN
|
|
|
|
|
(Name of Plan) |
|
|
|
|
|
|
|
|
|
/s/ Toby Cherry
Toby Cherry
|
|
|
|
|
401(k) Committee Member |
|
|
2
Report of Independent Registered Public Accounting Firm
The Plan Committee
Paychex, Inc. 401(k)
Incentive Retirement Plan
Rochester, New York 14625
We have audited the accompanying statements of net assets available for benefits of the Paychex,
Inc. 401(k) Incentive Retirement Plan (the Plan) as of December 31, 2007 and 2006, and the related
statements of changes in net assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plans management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. We
were not engaged to perform an audit of the Plans internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plans internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 2007 and 2006, and the
changes in its net assets available for benefits for the years then ended, in conformity with U.S.
generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken
as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December
31, 2007 is presented for purposes of additional analysis and is not a required part of the
financial statements but is supplementary information required by the Department of Labors Rules
and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plans management. The supplemental
schedule has been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ Ernst & Young LLP
June 19, 2008
Cleveland, Ohio
3
PAYCHEX, INC. 401(k) INCENTIVE RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2007 |
|
|
2006 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
4,600 |
|
|
$ |
3,045 |
|
|
|
|
|
|
|
|
|
|
Investments (at fair value): |
|
|
|
|
|
|
|
|
Paychex ESOP Stock Fund |
|
|
144,481 |
|
|
|
189,000 |
|
American Funds EuroPacific Growth Fund |
|
|
45,545 |
|
|
|
32,296 |
|
American Funds Growth Fund of America |
|
|
45,801 |
|
|
|
36,677 |
|
ClearCourse Group Variable Annuity |
|
|
4,761 |
|
|
|
|
|
Columbia Short Term Bond Fund |
|
|
5,600 |
|
|
|
4,703 |
|
Dreyfus Mid Cap Index Fund |
|
|
3,740 |
|
|
|
1,902 |
|
Dreyfus Small Cap Stock Fund |
|
|
2,674 |
|
|
|
1,752 |
|
Fidelity Balanced Fund |
|
|
34,949 |
|
|
|
28,694 |
|
Fidelity Freedom Funds 2005-2050 |
|
|
25,643 |
|
|
|
12,399 |
|
Fidelity Freedom Income Fund |
|
|
218 |
|
|
|
497 |
|
Fidelity Retirement Money Market Portfolio |
|
|
31,621 |
|
|
|
32,798 |
|
Fidelity U.S. Bond Index Fund |
|
|
20,811 |
|
|
|
18,438 |
|
Fidelity U.S. Government Reserve Fund |
|
|
508 |
|
|
|
|
|
Oppenheimer Main Street Small Cap Fund |
|
|
24,137 |
|
|
|
23,717 |
|
Spartan International Index Fund |
|
|
10,879 |
|
|
|
4,746 |
|
Spartan Total Market Index Fund |
|
|
3,895 |
|
|
|
1,978 |
|
Spartan U.S. Equity Index Fund |
|
|
30,589 |
|
|
|
29,696 |
|
Van Kampen Growth and Income Fund |
|
|
23,519 |
|
|
|
21,205 |
|
Victory Special Value Fund |
|
|
34,389 |
|
|
|
25,736 |
|
Participant loans |
|
|
11,259 |
|
|
|
10,655 |
|
|
|
|
Total investments |
|
|
505,019 |
|
|
|
476,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions
receivable: |
|
|
|
|
|
|
|
|
Participant |
|
|
837 |
|
|
|
|
|
Employer |
|
|
353 |
|
|
|
|
|
|
|
|
Total
contributions receivable |
|
|
1,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits |
|
$ |
510,809 |
|
|
$ |
479,934 |
|
|
See accompanying notes to financial statements.
4
PAYCHEX, INC. 401(k) INCENTIVE RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
December 31, |
|
|
|
2007 |
|
|
2006 |
|
|
Contributions: |
|
|
|
|
|
|
|
|
Participant |
|
$ |
39,715 |
|
|
$ |
34,853 |
|
Employer, net of forfeitures |
|
|
12,707 |
|
|
|
9,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total contributions |
|
|
52,422 |
|
|
|
44,658 |
|
|
|
|
|
|
|
|
|
|
Investment income: |
|
|
|
|
|
|
|
|
Dividend and interest income |
|
|
26,045 |
|
|
|
16,997 |
|
Net realized and unrealized (depreciation)/
appreciation in fair value of investments |
|
|
(8,554 |
) |
|
|
23,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment income |
|
|
17,491 |
|
|
|
40,602 |
|
|
|
|
|
|
|
|
|
|
Benefits paid to participants |
|
|
(39,038 |
) |
|
|
(28,090 |
) |
|
|
|
|
Change in net assets available for benefits |
|
|
30,875 |
|
|
|
57,170 |
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits at beginning of year |
|
|
479,934 |
|
|
|
422,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits at end of year |
|
$ |
510,809 |
|
|
$ |
479,934 |
|
|
See accompanying notes to financial statements.
5
PAYCHEX, INC. 401(k) INCENTIVE RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 and 2006
NOTE A. PLAN DESCRIPTION
The following brief description of the Paychex, Inc. (the Company or Paychex) 401(k) Incentive
Retirement Plan (the Plan or Paychex Plan) is provided for general information purposes only.
More complete information regarding the Plans provisions may be found in the plan document and
summary plan description.
General: The Plan is a defined contribution plan qualified under Sections 401(a) of the Internal
Revenue Code (the Code), which includes provisions under Section 401(k) allowing an eligible
participant to direct the employer to contribute a portion of the participants compensation to the
Plan on a pre-tax and/or after-tax basis through payroll deductions. The Plan is subject to the
provisions of the Employer Retirement Income Security Act of 1974 (ERISA).
The Plan was established on July 1, 1984 and restated in April 2002 and January 2007 to include
legislative and other applicable regulatory developments through January 1, 2007 as well as make
other changes and enhancements to the Plan. As part of the 2002 restatement, the Plan was amended
to operate in part as an employee stock ownership plan (ESOP), which is designed to comply with
Section 4975(e) and the regulations under the Code. It is not currently intended that the Plan be
a leveraged ESOP, although the Plan permits the ESOP to borrow money to purchase ESOP stock if the
employer should so elect at some future date. As of December 31, 2007 and 2006, all shares of ESOP
stock are allocated to participant accounts. Under this ESOP feature, participants are able to
receive dividends on their shares of Paychex common stock in the form of cash or have them
reinvested into the Fund.
Plan Amendments: In addition to the Plan restatement noted above, the Plan was also amended three
times in 2007 to change certain technical definitions as used in the Plan, provide for hardship
distributions, and to amend employee vesting and employer contribution provisions.
These amendments did not have a material effect on net assets available for benefits or changes in
net assets available for benefits.
Plan Administration: The Plan is administered by the Paychex, Inc. 401(k) Incentive Retirement
Plan Committee (the Plan Committee), which is appointed by the Board of Directors of the Company.
As of May 1, 2006, the Plans trustee and record keeper became Fidelity Investments (Fidelity).
Fidelity is also the trustee for the Paychex ESOP Stock Fund. Prior to May 1, 2006, the Plans
trustee and record keeper was Princeton Retirement Group, previously known as AMVESCAP Retirement
Services (AMVESCAP) with the Bank of New York as the trustee of the Paychex ESOP Stock Fund.
These parties were responsible for the custody and management of the Plans assets for the periods
noted.
Eligible Employees: All new employees of the Company and its participating subsidiaries are
eligible to participate in the salary deferral portion of the Plan immediately. Employees must be
employed for one year in which a minimum of 1,000 hours have been worked to be eligible to receive
a Company matching contribution.
6
NOTE A. PLAN DESCRIPTION (continued)
Contributions: Employees may contribute, on a pre-tax and/or Roth 401(k) after-tax basis, from 1%
up to 50% of their compensation through payroll deductions in increments of 1%, subject to the
limitations established by the Code. The maximum annual employee contribution to the Plan was
$15,500 in 2007 and $15,000 in 2006. The Plan Committee may establish for any Plan year a
contribution percentage limit for highly compensated employees that is less than 50%. Employees
may also contribute amounts representing rollover distributions from other qualified defined
benefit or defined contribution plans or individual retirement accounts. As of September 1, 2007,
the Company will make a discretionary matching contribution of up to 100% of the first 3% of
eligible pay, and up to 50% of the next 2% of eligible pay that an employee contributes to the
Plan. Prior to September 1, 2007, the Company made a matching contribution of up to 50% of the
first 6% of eligible pay that an employee contributes to the Plan. The Company may also elect to
make an additional discretionary contribution to the Plan, but has not done so for the years ended
December 31, 2007 and 2006, respectively.
Additionally, participants who are age 50 or older by the end of the calendar year are also allowed
to make an additional catch-up contribution. This contribution was limited to $5,000 in 2007 and
2006. The catch-up contribution is not subject to the Company matching contribution in 2007 and
2006.
Vesting: Participants are fully vested as to their elective contributions and rollover
contributions as well as any earnings or losses on them. As of September 1, 2007, employees are
fully vested immediately with respect to Company matching contributions made on or after that date,
and completion of 1,000 hours of service per year for three calendar years for Company matching
contributions made before September 1, 2007. Employees are also fully vested upon disability,
death, or the attainment of retirement age, which is age 65. Within the ESOP, dividends received
are fully vested, regardless of years of service.
Participant Accounts: The trustee maintains an account for each participant, including participant
directed allocations to each investment fund. Each participants account is credited with the
participants contribution and allocations of any employer contribution and Plan earnings, less
loans and withdrawals. The investments under the Plan are 100% participant-directed. Plan
participants can fully diversify their portfolios by choosing from any or all investment fund
choices in the Plan. Transfers in and out of investment funds, including the Paychex ESOP Stock
Fund, are not restricted, with the exception of certain restricted trading periods for individuals
designated as insiders as specified in the Paychex Insider Trading Policy. The Company matching
contributions follow the same fund elections as the employee compensation deferrals.
Investment Options: As of December 31, 2007, participants may direct contributions in the following
investment options:
|
|
|
Paychex ESOP Stock Fund |
|
|
|
|
American Funds EuroPacific Growth Fund |
|
|
|
|
American Funds Growth Fund of America |
|
|
|
|
ClearCourse Group Variable Annuity |
|
|
|
|
Columbia Short Term Bond Fund |
|
|
|
|
Dreyfus Mid Cap Index Fund |
7
NOTE A. PLAN DESCRIPTION (continued)
|
|
|
Dreyfus Small Cap Stock Fund |
|
|
|
|
Fidelity Balanced Fund |
|
|
|
|
Fidelity Freedom Funds 2005-2050 |
|
|
|
|
Fidelity Freedom Income Fund |
|
|
|
|
Fidelity Retirement Money Market Portfolio |
|
|
|
|
Fidelity U.S. Bond Index Fund |
|
|
|
|
Fidelity U.S. Government Reserve Fund |
|
|
|
|
Oppenheimer Main Street Small Cap Fund |
|
|
|
|
Spartan International Index Fund |
|
|
|
|
Spartan Total Market Index Fund |
|
|
|
|
Spartan U.S. Equity Index Fund |
|
|
|
|
Van Kampen Growth and Income Fund |
|
|
|
|
Victory Special Value Fund |
Participants may choose to change their investment option choices and how their contributions are
allocated to each fund chosen at any time. The Plan Committee regularly reviews performance, fees
and other key indicators of all investment options and may enter or exit funds at its discretion
through December 31, 2007. As part of the 2007 Plan restatement, after December 31, 2007 the Plan
Committee may enter and exit funds at its discretion with the exception of the Paychex ESOP Stock
Fund.
Forfeited Accounts: Forfeited non-vested assets are used to reduce future employer contributions.
Total forfeitures used to reduce employer contributions were approximately $302,000 and $160,000
for 2007 and 2006, respectively. Forfeited balances not yet applied to reduce employer
contributions as of December 31, 2007 and 2006, respectively, were not material to the financial
statements.
Participant Loans: The Plan allows participants to borrow from a minimum of $1,000 up to a maximum
equal to the lesser of 50% of their vested account balance, or $50,000 reduced by the highest
outstanding loan balance in the previous twelve months. Only one loan may be outstanding at any
time. The rate of interest is the prime lending rate plus 1% at the time the loan is disbursed.
Payroll deductions are required to repay the principal and interest on the loan within four and
one-half years, except for loans used for the purchase of a principal residence, which are required
to be repaid within nine and one-half years. Participant loans are subject to a one time
non-refundable loan origination fee of $75, and until May 1, 2006, a $10 annual fee for the
duration of the loan, which are deducted from the participants account.
Withdrawals: As of December 1, 2007, withdrawals for financial hardship are permitted provided
they are for a significant and immediate financial need, meet the applicable hardship criteria as
outlined in the Code, and the distribution is necessary to satisfy that need. Participants are
required to fully use the Plan loan program, described above, before requesting a hardship
withdrawal and only one hardship withdrawal may be made in any
twelve month period. The Plan also allows for partial withdrawals at age
59 1/2 and for withdrawals
of pre-2002 rollover contribution balances of actively employed Plan participants.
8
NOTE A. PLAN DESCRIPTION (continued)
Payment of Benefits: Upon separation from employment, at retirement or reaching the age of 59 1/2, a
participant may elect to receive either a lump-sum amount equal to the value of the participants
vested interest in his or her account, or annual installments over a fixed period of time.
Participants electing to receive the vested interest in their ClearCourse Group Variable Annuity in
a lump-sum amount between the ages of 55 and 64 receive a reduced lifetime retirement income
guarantee, and prior to age 55 forfeit the lifetime retirement income guarantee.
Voting and Tender Offer Rights on ESOP Stock: Each participant in the Paychex ESOP Stock Fund is
entitled to exercise voting rights on shares held in his or her account and also direct the ESOP
trustee to tender his or her shares of ESOP Stock if an offer is made to purchase such shares. If
the participant does not vote or indicate his or her preference with respect to a tender offer, the
trustee will vote participants shares and unallocated shares in the same proportion as the shares
for which the trustee has received instructions.
ESOP Stock at Time of Distribution: Under Federal income tax regulations, if ESOP stock should not
be readily tradable on an established market at the time of a participants distribution, the
Company will issue a put option to the participant. The put option allows the participant to sell
ESOP stock to the Company at a price that is representative of the fair market value of the stock.
If the put option is exercised with respect to ESOP stock distributed as part of a total
distribution, then the Company can pay for the purchase with interest
over a period not to exceed five years. If the put option is exercised with respect to an installment distribution,
then the Company must pay for the purchase within thirty days of the exercise of the option.
Plan Termination: Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the Plan subject to
the provisions of ERISA. In the event of Plan termination, participants will become fully vested
in their account balances.
New Accounting Pronouncements: In September 2006, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standard (SFAS) No. 157, Fair Value Measurements.
This statement clarifies the definition of fair value, establishes a framework for measuring fair
value, and expands the disclosures on fair value measurements. Subsequently, in February 2008,
the FASB issued FASB Staff Position (FSP) No. 157-2, Effective Date of FASB Statement No. 157.
This FSP delays the effective date of FASB Statement No. 157 for certain non-financial assets and
non-financial liabilities to fiscal years beginning after November 15, 2008. The Plan expects to
adopt SFAS No. 157, except for this deferral, on January 1, 2008, and does not expect the statement
to have a material effect on its net assets available for benefits.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities-Including an amendment to FASB Statement No. 115. This statement allows
an entity to irrevocably elect fair value as a measurement attribute for certain financial assets
and financial liabilities with changes in fair value recognized in the results of operations.
9
NOTE A. PLAN DESCRIPTION (continued)
The statement also establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for similar types of
assets and liabilities. The Plan expects to adopt SFAS No. 159 on January 1, 2008, and does not
expect the statement to have a material effect on its net assets available for benefits.
NOTE B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting: The financial statements of the Plan are prepared under the accrual method of
accounting in conformity with United States generally accepted accounting principles (GAAP).
Administrative Expenses: Administrative expenses of the Plan are paid by the Company. The Company
paid approximately $166,000 and $225,000 in 2007 and 2006, respectively, in administrative
expenses.
Investment Valuation and Income Recognition: Investments are stated at their approximate fair
value based on quoted market prices. Participant loans are valued at the principal amount, which
approximates fair value. The ClearCourse Group Variable Annuity is valued by Genworth Life and
Annuity Insurance Company using the quoted market price of the underlying investments (GE
Investment Funds, Inc.-Total Return Fund Class 2) less applicable ClearCourse asset charges.
Purchases and sales of securities are recorded on a trade date basis. Net realized gains or losses
upon the sale of investments are based on their average cost. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis.
Payment of Benefits: Benefits are recorded when paid.
Contributions: Contributions from the Company are accrued for in accordance with the terms of the
Plan. Participant contributions are recorded in the period the Company makes corresponding payroll
deductions.
Use of Estimates: The preparation of financial statements in conformity with GAAP requires the
Plan Committee to make estimates and assumptions that affect the financial statements and
accompanying notes. Actual results could differ from those estimates.
NOTE C. RISKS AND UNCERTAINTIES
The Plan provides for certain investments that are exposed to various risks, such as interest rate
risk, credit risk and market volatility risk. The Plan attempts to limit these risks by
authorizing and offering participants a broad range of investment options that are invested in high
quality securities or are offered and administered by reputable and known investment and insurance
companies. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in values of investment securities will occur in the near term,
and such changes could materially affect the amounts reported in the statements of net assets
available for benefits and of changes in net assets available for benefits.
10
NOTE C. RISKS AND UNCERTAINTIES (continued)
The Plans exposure to a concentration of risk is limited by the diversification of investments
across nineteen participant-directed fund elections. Additionally, the investments within each
participant-directed fund election are further diversified into varied financial instruments, with
the exception of the Paychex ESOP Stock Fund, which invests in a single security.
NOTE D. PARTY-IN-INTEREST TRANSACTIONS
The Plans holdings of Paychex common stock qualify as a party-in-interest transaction. Also, all
transactions between the Plan and Fidelity, AMVESCAP and the Bank of New York qualify as
party-in-interest transactions. As of December 31, 2007, the Plan held 3,978,867 shares of Paychex
common stock at a fair market value of $144,114,563. As of December 31, 2006, the Plan held
4,781,431 shares of Paychex common stock at a fair market value of $188,999,664.
NOTE E. TAX STATUS
The Plan
received a determination letter from the Internal Revenue Service
dated May 21, 2008
stating that the Plan is qualified under Section 401(a) and Section 4975(e) of the Code and,
therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to
operate in conformity with the Code to maintain its qualification. The Plan Committee believes the
Plan is being operated in compliance with the applicable requirements
of the Code and, therefore, believes that the Plan, as amended, is qualified and the related trust
is tax exempt.
NOTE
F. RECONCILIATION OF FINANCIAL STATEMENTS TO IRS FORM 5500
As allowed
by ERISA, the Plan has chosen to prepare its IRS Form 5500 on
the cash basis of accounting. The financial statements have been
prepared on the accrual basis of accounting in accordance with GAAP.
The following is a reconciliation between the net assets available
for benefits as reported in the financial statements to the net assets
available for benefits as reported in IRS Form 5500 as of
December 31, 2007:
|
|
|
|
|
Net assets
available for benefits financial statements |
|
$ |
510,809 |
|
Less: participant and employer contributions receivable |
|
|
1,190 |
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits IRS Form 5500 |
|
$ |
509,619 |
|
|
|
|
|
11
NOTE G. INVESTMENTS
The change in fair value of the Plans investments, including net realized and unrealized gains and
losses, is as follows:
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
December 31, |
|
|
|
2007 |
|
|
2006 |
|
|
|
(In Thousands) |
|
|
Paychex ESOP Stock Fund |
|
$ |
(11,487 |
) |
|
$ |
8,230 |
|
American Funds EuroPacific Growth Fund |
|
|
2,764 |
|
|
|
(44 |
) |
American Funds Growth Fund of America |
|
|
1,055 |
|
|
|
72 |
|
ClearCourse Group Variable Annuity |
|
|
131 |
|
|
|
|
|
Columbia Short Term Bond Fund |
|
|
40 |
|
|
|
37 |
|
Dreyfus Mid Cap Index Fund |
|
|
(241 |
) |
|
|
2,135 |
|
Dreyfus Small Cap Stock Fund |
|
|
(296 |
) |
|
|
11 |
|
Fidelity Balanced Fund |
|
|
49 |
|
|
|
(429 |
) |
Fidelity Freedom Funds 2005-2050 |
|
|
208 |
|
|
|
385 |
|
Fidelity Freedom Income Fund |
|
|
(2 |
) |
|
|
(4 |
) |
Fidelity U.S. Bond Index Fund |
|
|
52 |
|
|
|
287 |
|
Oppenheimer Main Street Small Cap Fund |
|
|
(2,783 |
) |
|
|
(1,507 |
) |
Spartan International Index Fund |
|
|
354 |
|
|
|
245 |
|
Spartan Total Market Index Fund |
|
|
24 |
|
|
|
72 |
|
Spartan U.S. Equity Index Fund |
|
|
1,001 |
|
|
|
2,237 |
|
Van Kampen Growth and Income Fund |
|
|
(996 |
) |
|
|
738 |
|
Victory Special Value Fund |
|
|
1,573 |
|
|
|
13 |
|
AIM Basic Value Fund |
|
|
|
|
|
|
963 |
|
AIM International Growth Fund |
|
|
|
|
|
|
3,291 |
|
American Funds Balanced Fund |
|
|
|
|
|
|
795 |
|
INVESCO 500 Index Fund |
|
|
|
|
|
|
1,410 |
|
Oppenheimer Capital Appreciation Fund |
|
|
|
|
|
|
1,485 |
|
PIMCO Low Duration A Fund |
|
|
|
|
|
|
(35 |
) |
PIMCO Total Return Fund |
|
|
|
|
|
|
(268 |
) |
Royce Low-Priced Stock Fund |
|
|
|
|
|
|
3,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized (depreciation)/
appreciation in fair value of investments |
|
$ |
(8,554 |
) |
|
$ |
23,605 |
|
|
12
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
(SCHEDULE H, LINE 4i FORM 5500)
PAYCHEX, INC. 401(k) INCENTIVE RETIREMENT PLAN
EIN-16-1124166
PLAN-0-40436
DECEMBER 31, 2007
(Dollars, Units, and Shares in Thousands)
|
|
|
|
|
|
|
|
|
|
|
Identity of |
|
Description of Investment Including Maturity |
|
|
|
|
|
|
Party |
|
Date, Rate of Interest, Collateral, Par or |
|
Units/ |
|
|
|
|
Involved |
|
Maturity Value |
|
Shares |
|
|
Current Value |
|
|
Fidelity* |
|
Cash |
|
|
|
|
$ |
4,600 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Paychex, Inc. Common Stock |
|
3,979 |
|
|
|
144,481 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
American Funds EuroPacific Growth Fund |
|
908 |
|
|
|
45,545 |
|
Fidelity* |
|
American Funds Growth Fund of America |
|
1,357 |
|
|
|
45,801 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
ClearCourse Group Variable Annuity |
|
437 |
|
|
|
4,761 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Columbia Short Term Bond Fund |
|
568 |
|
|
|
5,600 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Dreyfus Mid Cap Index Fund |
|
132 |
|
|
|
3,740 |
|
Fidelity* |
|
Dreyfus Small Cap Stock Fund |
|
126 |
|
|
|
2,674 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Fidelity Balanced Fund |
|
1,782 |
|
|
|
34,949 |
|
Fidelity* |
|
Fidelity Freedom Funds 2005-2050 |
|
1,980 |
|
|
|
25,643 |
|
Fidelity* |
|
Fidelity Freedom Income Fund |
|
19 |
|
|
|
218 |
|
Fidelity* |
|
Fidelity Retirement Money Market Portfolio |
|
31,621 |
|
|
|
31,621 |
|
Fidelity* |
|
Fidelity U.S. Bond Index Fund |
|
1,911 |
|
|
|
20,811 |
|
Fidelity* |
|
Fidelity U.S. Government Reserve Fund |
|
508 |
|
|
|
508 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Oppenheimer Main Street Small Cap Fund |
|
1,224 |
|
|
|
24,137 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Spartan International Index Fund |
|
230 |
|
|
|
10,879 |
|
Fidelity* |
|
Spartan Total Market Index Fund |
|
95 |
|
|
|
3,895 |
|
Fidelity* |
|
Spartan U.S. Equity Index Fund |
|
589 |
|
|
|
30,589 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Van Kampen Growth and Income Fund |
|
1,107 |
|
|
|
23,519 |
|
|
|
|
|
|
|
|
|
|
|
Fidelity* |
|
Victory Special Value Fund |
|
1,880 |
|
|
|
34,389 |
|
|
|
|
|
|
|
|
|
|
|
Participants * |
|
Participant loans ** |
|
|
|
|
|
11,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
509,619 |
|
|
|
|
|
* |
|
Represents party-in-interest
|
|
** |
|
Loans to participants have various maturity dates (interest at 5.0% to 10.5%). |
13