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 $32.1 million and $91.7 million for the three and nine months ended February 28, 2019, respectively, compared to $31.5 million and $88.0 million for the three and nine months ended February 28, 2018, respectively.



The Company has substantially completed 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. As of May 31, 2018, the Company had $14.2 million remaining in escrow. There was no remaining balance in escrow as of February 28, 2019.