Paychex 2015 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2015 Paychex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The estimated amortization expense for the next five fiscal years relating to intangible asset balances is as
follows:
In millions
Year ending May 31, Estimated amortization expense
2016 ....................................................... $11.3
2017 ....................................................... 8.2
2018 ....................................................... 5.5
2019 ....................................................... 3.6
2020 ....................................................... 2.0
Note I — Income Taxes
The components of deferred tax assets and liabilities are as follows:
May 31,
In millions 2015 2014
Deferred tax assets:
Compensation and employee benefit liabilities ........................... $ 20.9 $ 18.7
Other current liabilities .............................................. 6.9 6.9
Tax credit carry forward ............................................. 40.1 38.3
Depreciation ...................................................... 11.9 8.3
Stock-based compensation ........................................... 21.6 21.1
Other ............................................................ 24.9 28.7
Gross deferred tax assets ........................................... 126.3 122.0
Deferred tax liabilities:
Capitalized software ................................................ 53.6 50.1
Depreciation ...................................................... 3.8 12.2
Goodwill and intangible assets ........................................ 52.0 46.7
Revenue not subject to current taxes .................................... 13.1 12.6
Unrealized gains on available-for-sale securities .......................... 5.3 13.2
Other ............................................................ 0.3 0.4
Gross deferred tax liabilities ........................................ 128.1 135.2
Net deferred tax liability .............................................. $ (1.8) $ (13.2)
The deferred tax asset related to tax credit carry forward consists of alternative minimum tax credits, which
may be carried forward indefinitely.
57