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, 2021

Goodwill and Intangible Assets, Net of Accumulated Amortization [Abstract]

Goodwill and Intangible Assets, Net of Accumulated Amortization

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

Goodwill and changes in goodwill as of and for the years ended May 31, 2021 and May 31, 2020 were as follows:


	May 31,
In millions	2021		2020
Balance, beginning of fiscal year	$	1,791.1	$	1,782.6
Changes during the period:
Goodwill acquired		19.6		4.1
Acquisition accounting adjustments		—		4.5
Currency translation adjustment		10.0		(0.1)
Balance, end of fiscal year	$	1,820.7	$	1,791.1

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	2021		2020
Client lists	$	632.3	$	618.4
Other intangible assets		24.1		23.3
Total intangible assets, gross		656.4		641.7
Less: Accumulated amortization		380.6		311.1
Intangible assets, net of accumulated amortization	$	275.8	$	330.6

During fiscal 2021, the Company acquired customer lists with a weighted-average amortization of 8.9 years.

Amortization expense relating to intangible assets was $68.6 million, $81.9 million, and $55.8 million for fiscal 2021, 2020, and 2019, respectively.

The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during fiscal 2021, 2020, or 2019.

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
2022	$	61.7
2023		57.0
2024		54.1
2025		51.5
2026		30.1