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

Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net of Accumulated Depreciation

Property and Equipment, Net of Accumulated Depreciation

12 Months Ended

May 31, 2023

Property, Plant and Equipment [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	2023		2022
Land and improvements	$	9.0	$	10.3
Buildings and improvements		130.5		157.1
Data processing equipment		214.5		217.4
Software (1)		927.3		832.1
Furniture, fixtures, and equipment		77.2		97.7
Leasehold improvements		67.3		91.7
Construction in progress (1)		51.7		50.7
Total property and equipment, gross		1,477.5		1,457.0
Less: Accumulated depreciation		1,081.2		1,055.7
Property and equipment, net of accumulated depreciation	$	396.3	$	401.3

(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 $128.4 million, $133.7 million, and $123.4 million for fiscal 2023, 2022, and 2021, respectively.