Paychex 2015 Annual Report Download - page 77

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note G — Property and Equipment, Net of Accumulated Depreciation
The components of property and equipment, at cost, consisted of the following:
May 31,
In millions 2015 2014
Land and improvements ............................................... $ 8.3 $ 8.1
Buildings and improvements ............................................ 102.1 101.1
Data processing equipment ............................................. 190.9 180.8
Software ........................................................... 391.8 344.8
Furniture, fixtures, and equipment ....................................... 145.6 145.0
Leasehold improvements ............................................... 106.2 101.7
Construction in progress ............................................... 28.5 25.3
Total property and equipment, gross .................................... 973.4 906.8
Less: Accumulated depreciation ......................................... 619.5 564.6
Property and equipment, net of accumulated depreciation $353.9 $342.2
Depreciation expense was $92.1 million, $89.1 million, and $79.2 million for fiscal years 2015, 2014, and
2013, respectively.
Note H — Goodwill and Intangible Assets, Net of Accumulated Amortization
The Company had goodwill balances on its Consolidated Balance Sheets of $561.5 million as of May 31,
2015, and $540.3 million as of May 31, 2014. The increase in goodwill since May 31, 2014 was the result of an
immaterial business acquisition.
The Company has certain intangible assets with finite lives. The components of intangible assets, at cost,
consisted of the following:
May 31,
In millions 2015 2014
Client lists .......................................................... $244.6 $240.9
Other intangible assets ................................................ 3.2 2.6
Total intangible assets, gross .......................................... 247.8 243.5
Less: Accumulated amortization ......................................... 215.4 202.9
Intangible assets, net of accumulated amortization ........................ $ 32.4 $ 40.6
During fiscal 2015, the Company acquired intangible assets with weighted-average amortization periods as
follows: customer lists — 8.0 years; other intangible assets — 3.0 years; and total — 7.6 years. Amortization
expense relating to intangible assets was $14.5 million, $15.9 million, and $19.0 million for fiscal years 2015,
2014, and 2013, respectively.
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