Paychex, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net of Accumulated Depreciation

Property and Equipment, Net of Accumulated Depreciation

3 Months Ended

Aug. 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:



	August 31,		May 31,
In millions	2019		2019
Land and improvements	$	10.8	$	10.8
Buildings and improvements		162.6		162.9
Data processing equipment		223.2		221.6
Software ⁽¹⁾		646.2		626.6
Furniture, fixtures, and equipment		118.0		117.2
Leasehold improvements		104.7		105.4
Construction in progress ⁽¹⁾		29.6		30.3
Total property and equipment, gross		1,295.1		1,274.8
Less: Accumulated depreciation		891.7		866.1
Property and equipment, net of accumulated depreciation	$	403.4	$	408.7

⁽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 $31.8 million for the three months ended August 31, 2019, compared to $29.4 million for the three months ended August 31, 2018.