Paychex 2016 Annual Report Download - page 74

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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
2017 ....................................................... $17.7
2018 ....................................................... 14.1
2019 ....................................................... 11.1
2020 ....................................................... 8.5
2021 ....................................................... 6.5
Note J — Income Taxes
The components of deferred tax assets and liabilities are as follows:
May 31,
In millions 2016 2015
Deferred tax assets:
Compensation and employee benefit liabilities ........................... $ 21.4 $ 20.9
Other current liabilities .............................................. 7.9 6.9
Tax credit carry forward ............................................. 40.0 40.1
Depreciation ...................................................... 8.8 11.9
Stock-based compensation ........................................... 22.0 21.6
Tax benefit of uncertain tax positions ................................... 18.6 15.7
Other ............................................................ 7.1 9.2
Gross deferred tax assets ........................................... 125.8 126.3
Deferred tax liabilities:
Capitalized software ................................................ 56.3 53.6
Depreciation ...................................................... 2.5 3.8
Goodwill and intangible assets ........................................ 58.5 52.0
Revenue not subject to current taxes .................................... 13.3 13.1
Unrealized gains on available-for-sale securities .......................... 17.3 5.3
Other ............................................................ — 0.3
Gross deferred tax liabilities ........................................ 147.9 128.1
Net deferred tax liability .............................................. $ (22.1) $ (1.8)
The deferred tax asset related to tax credit carry forward consists of alternative minimum tax credits, which
may be carried forward indefinitely.
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