Paychex 2014 Annual Report Download - page 76

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note I — Income Taxes
The components of deferred tax assets and liabilities are as follows:
May 31,
In millions 2014 2013
Deferred tax assets:
Compensation and employee benefit liabilities ........................... $ 18.7 $ 16.3
Other current liabilities .............................................. 6.9 6.3
Tax credit carry forward ............................................. 38.3 35.3
Depreciation ...................................................... 8.3 8.5
Stock-based compensation ........................................... 21.1 24.6
Other ............................................................ 15.4 16.6
Gross deferred tax assets ........................................... 108.7 107.6
Deferred tax liabilities:
Capitalized software ................................................ 50.1 45.8
Depreciation ...................................................... 12.2 20.2
Goodwill and Intangible assets ........................................ 46.7 41.0
Revenue not subject to current taxes .................................... 12.6 11.7
Unrealized gains on available-for-sale securities .......................... 13.2 13.3
Other ............................................................ 0.4 0.6
Gross deferred tax liabilities ........................................ 135.2 132.6
Net deferred tax liability .............................................. $ (26.5) $ (25.0)
The deferred tax asset related to tax credit carry forward consists of alternative minimum tax credits, which
may be carried forward indefinitely.
The components of the provision for income taxes are as follows:
Year ended May 31,
In millions 2014 2013 2012
Current:
Federal .................................................. $314.5 $274.2 $259.8
State .................................................... 51.0 62.9 40.8
Total current ............................................. 365.5 337.1 300.6
Deferred:
Federal .................................................. (3.5) 5.5 9.3
State .................................................... (1.4) (0.2) 2.4
Total deferred ............................................ (4.9) 5.3 11.7
Provision for income taxes .................................... $360.6 $342.4 $312.3
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