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

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets, Net of Accumulated Amortization

Goodwill and Intangible Assets, Net of Accumulated Amortization

3 Months Ended

Aug. 31, 2019

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

Goodwill and Intangible Assets, Net of Accumulated Amortization

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

The change in goodwill for the three months ended August 31, 2019 is as follows:


	August 31,
In millions	2019
Balance, beginning of period	$	1,782.6
Changes during the period:
Goodwill acquired		-
Acquisition accounting adjustments		-
Currency translation adjustment		0.5
Balance, end of period	$	1,783.1

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



	August 31,		May 31,
In millions	2019		2019
Client lists	$	609.0	$	608.2
Other intangible assets		23.4		23.0
Total intangible assets, gross		632.4		631.2
Less: Accumulated amortization		252.9		232.1
Intangible assets, net of accumulated amortization	$	379.5	$	399.1

Amortization expense relating to intangible assets was $21.1 million for the three months ended August 31, 2019, compared to $6.5 million for the three months ended August 31, 2018.

The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during the three months ended August 31, 2019 or August 31, 2018.

As of August 31, 2019, the estimated amortization expense relating to intangible asset balances for the full year fiscal 2020 and the following four fiscal years is as follows:


In millions	Estimated amortization
Year ending May 31,	expense
2020	$	71.7
2021		64.0
2022		57.6
2023		54.3
2024		51.9