Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net of Accumulated Depreciation

v3.19.2
Property and Equipment, Net of Accumulated Depreciation
12 Months Ended
May 31, 2019
Property and Equipment, Net of Accumulated Depreciation [Abstract]  
Property and Equipment, Net of Accumulated Depreciation

Note I — Property and Equipment, Net of Accumulated Depreciation

The components of property and equipment, at cost, consisted of the following:







 

 

 

 

 

 



 

 

 

 

 

 



 

May 31,

In millions

 

2019

 

2018

Land and improvements

 

$

10.8 

 

$

10.6 

Buildings and improvements

 

 

162.9 

 

 

126.4 

Data processing equipment

 

 

221.6 

 

 

211.3 

Software (1)

 

 

626.6 

 

 

545.5 

Furniture, fixtures, and equipment

 

 

117.2 

 

 

114.5 

Leasehold improvements

 

 

105.4 

 

 

111.4 

Construction in progress (1)

 

 

30.3 

 

 

63.0 

Total property and equipment, gross

 

 

1,274.8 

 

 

1,182.7 

Less: Accumulated depreciation

 

 

866.1 

 

 

789.2 

Property and equipment, net of accumulated depreciation

 

$

408.7 

 

$

393.5 



(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 $125.7 million, $116.9 million, and $108.8 million for fiscal years 2019,  2018, and 2017, respectively. 



The Company has substantially completed its plan for a new multi-building Paychex campus, including the renovation of over 300,000 square feet based in Rochester, NY.  The Company completed the purchase of five buildings during the three months ended November 30, 2017 for a combined cost of approximately $34.7 million and placed approximately $16.0 million in escrow for building renovations. As of May 31, 2018, the Company had $14.2 million remaining in escrow. There was no remaining balance in escrow as of May 31, 2019.