Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net of Accumulated Depreciation

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Property and Equipment, Net of Accumulated Depreciation
 6 Months Ended
Nov. 30, 2017
Property and Equipment, Net of Accumulated Depreciation



Note H: Property and Equipment, Net of Accumulated Depreciation



The components of property and equipment, at cost, consisted of the following:







 

 

 

 

 

 



 

 

 

 

 

 



 

November 30,

 

May 31,

In millions

 

2017

 

2017

Land and improvements

 

$

 9.7 

 

$

 8.3 

Buildings and improvements

 

 

 123.7 

 

 

 103.5 

Data processing equipment

 

 

 207.5 

 

 

 199.7 

Software (1)

 

 

 507.1 

 

 

 496.1 

Furniture, fixtures, and equipment

 

 

 113.4 

 

 

 115.2 

Leasehold improvements

 

 

 108.2 

 

 

 109.5 

Construction in progress (1)

 

 

 52.2 

 

 

 18.7 

Total property and equipment, gross

 

 

 1,121.8 

 

 

 1,051.0 

Less: Accumulated depreciation

 

 

 744.7 

 

 

 713.8 

Property and equipment, net of accumulated depreciation

 

$

 377.1 

 

$

 337.2 

(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 $28.4 million and $56.5 million for the three and six months ended November 30, 2017, respectively, compared to $25.5 million and $50.8 million for the three and six months ended November 30, 2016, respectively.



In August 2017, the Company announced its plan for a new multi-building Paychex campus based in Rochester, NY.  This involves the purchase of five buildings and the renovation of over 300,000 square feet of existing space in Rochester for a total estimated cost of approximately $60 million.  The new campus will result in the consolidation of currently leased space in the Rochester area.  During the three months ended November 30, 2017, the Company completed the purchase of these buildings for a combined cost of approximately $34.7 million and placed approximately $16.0 million in escrow for building renovations, which have commenced.  In addition, in September 2017, the Company entered into a transaction with the County of Monroe Industrial Development Agency (“COMIDA”) for purposes of obtaining public benefits and inducements, expiring on December 31, 2039.  The public inducements include exemption from sales and use taxes for goods and services directly related to the renovations of the new multi-building campus.