Paychex, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets, Net of Accumulated Amortization

Goodwill and Intangible Assets, Net of Accumulated Amortization

12 Months Ended

May 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net of Accumulated Amortization

Note J — Goodwill and Intangible Assets, Net of Accumulated Amortization

Goodwill and changes in goodwill as of and for the years ended May 31, 2022 and May 31, 2021 were as follows:


	May 31,
In millions	2022			2021
Balance, beginning of fiscal year	$	1,820.7		$	1,791.1
Changes during the period:
Goodwill acquired		27.7			19.6
Currency translation adjustment		(16.9	)		10.0
Balance, end of fiscal year	$	1,831.5		$	1,820.7

The Company had certain intangible assets on its Consolidated Balance Sheets. The components of intangible assets, at cost, consisted of the following:


	May 31,
In millions	2022		2021
Client lists	$	637.4	$	632.3
Other intangible assets		23.0		24.1
Total intangible assets, gross		660.4		656.4
Less: Accumulated amortization		435.8		380.6
Intangible assets, net of accumulated amortization	$	224.6	$	275.8

During fiscal 2022, the Company acquired customer lists with a weighted-average amortization period of 8.0 years.

Amortization expense relating to intangible assets was $58.1 million, $68.6 million, and $81.9 million for fiscal 2022, 2021, and 2020, respectively.

The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during fiscal 2022, 2021, or 2020.

The estimated amortization expense for the next five fiscal years relating to intangible asset balances is as follows:


In millions		Estimated amortization
Year ending May 31,	expense
2023	$		59.4
2024			56.5
2025			53.5
2026			37.8
2027			4.5