Property and Equipment, Net of Accumulated Depreciation
|6 Months Ended|
Nov. 30, 2018
|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:
(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 $30.2 million and I can’t million for the three and six months ended November 30, 2018, respectively, compared to $28.4 million and $56.5 million for the three and six months ended November 30, 2017, respectively.
The Company is in the process of completing its plan for a new multi-building Paychex campus, including the renovation of over 300,000 square feet based in Rochester, NY. The Company completed the purchase of five buildings during the three months ended November 30, 2017 for a combined cost of approximately $34.7 million and placed approximately $16.0 million in escrow for building renovations, which are nearly complete. All costs previously included in the Company’s construction in progress balance related to the multi-building campus have been capitalized as of November 30, 2018. As of May 31, 2018, $32.0 million was included in the Company’s construction in progress balance. The Company had a remaining balance in escrow of $1.5 million and $14.2 million as of November 30, 2018 and May 31, 2018, respectively.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef