Note H: Property and Equipment, Net of Accumulated Depreciation



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







Depreciation expense was $31.5 million and $88.0 million for the three and nine months ended February 28, 2018, respectively, compared to $26.4 million and $77.2 million for the three and nine months ended February 28, 2017, 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 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 are in-process.  In connection with this project, approximately $31.5 million is included in the Company’s construction in progress balance as of February 28, 2018.  In addition, in September 2017, the Company entered into a transaction with the County of Monroe Industrial Development Agency 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.