Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net of Accumulated Depreciation

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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:







 

 

 

 

 

 



 

 

 

 

 

 



 

August 31,

 

May 31,

In millions

 

2017

 

2017

Land and improvements

 

$

 8.3 

 

$

 8.3 

Buildings and improvements

 

 

 103.6 

 

 

 103.5 

Data processing equipment

 

 

 207.8 

 

 

 199.7 

Software (1)

 

 

 503.9 

 

 

 496.1 

Furniture, fixtures, and equipment

 

 

 115.3 

 

 

 115.2 

Leasehold improvements

 

 

 111.5 

 

 

 109.5 

Construction in progress (1)

 

 

 17.7 

 

 

 18.7 

Total property and equipment, gross

 

 

 1,068.1 

 

 

 1,051.0 

Less: Accumulated depreciation

 

 

 739.5 

 

 

 713.8 

Property and equipment, net of accumulated depreciation

 

$

 328.6 

 

$

 337.2 

(1)

Software includes both purchased software and costs capitalized related to internally developed software placed in service.  Capitalized costs related to internally developed software that has not yet been placed in service is included in construction in progress. 



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.