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

9 Months Ended

Feb. 28, 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 Company had goodwill balances on its Consolidated Balance Sheets of $1.8 billion as of February 28, 2019 and $814.0 million as of May 31, 2018. Changes in goodwill balances are the result of the acquisition of Oasis and foreign currency exchange rate fluctuations.

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



	February 28,		May 31,
In millions	2019		2018
Client lists(1)	$	608.7	$	308.5
Other intangible assets(1)		23.4		13.3
Total intangible assets, gross		632.1		321.8
Less: Accumulated amortization		211.2		180.4
Intangible assets, net of accumulated amortization	$	420.9	$	141.4

(1) Client lists and other intangible assets include current estimates of amounts acquired from Oasis as of December 20, 2018. Refer to Note D for further details.

Amortization expense relating to intangible assets was $20.9 million and $34.0 million for the three and nine months ended February 28, 2019, respectively, compared to $5.1 million and $14.3 million for the three and nine months ended February 28, 2018, respectively.

As of February 28, 2019, the estimated amortization expense relating to intangible asset balances for the full year fiscal 2019 and the following four fiscal years is as follows:


In millions	Estimated amortization
Year ending May 31,	expense
2019	$	54.9
2020		80.5
2021		66.6
2022		54.1
2023		43.1