Management Solutions revenue: $962.9 million for the second quarter and $1.9 billion for the six months, reflecting increases of 3% and 2%, respectively: Growth in the number of clients served across our suite of HCM solutions and client worksite employees for HR solutions.

PEO and Insurance Solutions revenue: $317.9 million for the second quarter and $637.2 million for the six months, reflecting increases of 7% for each period: Growth in the number of average PEO worksite employees; and Increase in PEO insurance revenues.

The Company finalized the purchase price allocation for the acquisition of Alterna as of November 30, 2023. This acquisition allows the Company to increase and diversify its portfolio of solutions and support serving small- to medium-sized businesses.

We maintain industry-leading margins by managing our personnel costs and expenses while continuing to invest in our business, particularly in sales and marketing and leading-edge technology. We believe these investments are critical to our success.

Our ongoing investments in our platforms have prepared us well for the demands of the current business and regulatory environments, allowing us to adapt while maintaining strong solutions and support delivery, resulting in high levels of client satisfaction and retention.

Our effective income tax rate was 24.0% for the second quarter and 23.6% for the six months, compared to 24.2% and 23.9%, for the prior year periods, respectively. All periods were impacted by the recognition of excess tax benefits related to employee stock-based compensation payments.

The possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks and data loss and business interruptions.

The possibility that we may be exposed to additional risks related to our co-employment relationship with our professional employer organization (“PEO”) business.

Changes in health insurance and workers' compensation insurance rates and underlying claim trends.

Our strategy focuses on providing industry-leading, integrated technology; delivering superior customer experiences; expanding our leadership in HR; growing our client bases; and engaging in strategic acquisitions.

Our mission is to be the leading provider of HR, employee benefits, insurance, and payroll solutions by being an essential partner to small- and medium-sized businesses across the U.S. and parts of Europe.

We closely monitor the evolving challenges and needs of small- and mid-sized businesses, and proactively aid our clients in navigating macroeconomic challenges, legislative changes, and other complexities they may face.

Total expenses increased 4% to $778.8 million for the second quarter and 3% to $1.6 billion for the six months, compared to the prior year periods. Total expenses increased as a result of the following.

We maintain industry-leading margins by managing our personnel costs and expenses while continuing to invest in our business, particularly in sales and marketing and leading-edge technology.

Our ongoing investments in our platforms have prepared us well for the demands of the current business and regulatory environments, allowing us to adapt while maintaining strong solutions and support delivery, resulting in high levels of client satisfaction and retention.

Our strategy focuses on providing industry-leading, integrated technology; delivering superior customer experiences; expanding our leadership in HR; growing our client bases; and engaging in strategic acquisitions.

We support our small-business clients by utilizing our proprietary, robust, software as a service (“SaaS”) Paychex Flex® platform and the Company's SurePayroll® SaaS-based solutions.

Our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support.

There were no shares repurchased during the second quarter and $296.0 million remains available for share repurchases in total under this program.

During the second quarter, the Company paid $0.5 million in federal excise tax for net share repurchases made during the fiscal year ended May 31, 2024.

We currently anticipate that corporate cash, corporate restricted cash, and total corporate investments as of November 30, 2024, along with projected operating cash flows and available short-term financing, will support our business operations, capital purchases, primarily investment in our technology solutions, share repurchases, dividend payments, and the servicing of long-term debt for the foreseeable future.

The Company has also entered into indemnification agreements with its officers, directors, and fiduciaries of certain of our retirement plans, which require the Company to defend and, if necessary, indemnify these individuals for certain pending or future claims as they relate to their services provided to the Company.

The Company is subject to various claims and legal matters that arise in the normal course of its business. These include disputes or potential disputes related to breach of contract, tort, employment-related claims, tax claims, statutory, and other matters.

The Company was in compliance with all of these covenants as of November 30, 2024

The impact of macroeconomic factors on the U.S. and global economy, and in particular on our small- and medium-sized business clients.

Volatility in the political and economic environment, including inflation and interest rate changes.

Our ability to attract and retain qualified people.