Property and Equipment, Net of Accumulated Depreciation
|3 Months Ended|
Aug. 31, 2017
|Property and Equipment, Net of Accumulated Depreciation [Abstract]|
|Property and Equipment, Net of Accumulated Depreciation||
Note H: Property and Equipment, Net of Accumulated Depreciation
The components of property and equipment, at cost, consisted of the following:
Depreciation expense was $28.1 million for the three months ended August 31, 2017 compared to $25.3 million for the three months ended August 31, 2016.
In August 2017, the Company announced its plan for a new multi-building Paychex campus based in Rochester, NY. This involves the purchase of five buildings and the renovation of over 300,000 square feet of existing space in Rochester for an estimated cost of $60 million. Subsequent to August 31, 2017, and as of the date of this report, the Company has completed the purchase of two of these buildings for a combined cost of $19.5 million. Renovations on the buildings purchased have not yet commenced. In addition, in September 2017, the Company entered into a transaction with the County of Monroe Industrial Development Agency (“COMIDA”) for purposes of obtaining public benefits and inducements, expiring on December 31, 2039. The public inducements include exemption from sales and use taxes for goods and services directly related to the renovations of the new multi-building campus.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://www.xbrl.org/2003/role/presentationRef