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, 2023

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, 2023 and May 31, 2022 were as follows:


	May 31,
In millions	2023			2022
Balance, beginning of fiscal year	$	1,831.5		$	1,820.7
Changes during the period:
Goodwill acquired		2.5			27.7
Currency translation adjustment		(0.0	)		(16.9	)
Balance, end of fiscal year	$	1,834.0		$	1,831.5

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	2023		2022
Client lists	$	638.2	$	637.4
Other intangible assets		23.0		23.0
Total intangible assets, gross		661.2		660.4
Less: Accumulated amortization		473.8		435.8
Intangible assets, net of accumulated amortization	$	187.4	$	224.6

During fiscal 2023, the Company acquired customer lists with a weighted-average amortization period of 8.0 years.

Amortization expense relating to intangible assets was $48.2 million, $58.1 million, and $68.6 million for fiscal 2023, 2022, and 2021, respectively.

The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during fiscal 2023, 2022, or 2021.

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
2024	$		45.0
2025			39.8
2026			35.6
2027			29.3
2028			26.2