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

6 Months Ended

Nov. 30, 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 change in goodwill for the six months ended November 30, 2019 is as follows:


	November 30,
In millions	2019
Balance, beginning of period	$	1,782.6
Changes during the period:
Goodwill acquired		-
Acquisition accounting adjustments		4.5
Currency translation adjustment		(1.3)
Balance, end of period	$	1,785.8

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



	November 30,		May 31,
In millions	2019		2019
Client lists	$	609.7	$	608.2
Other intangible assets		23.2		23.0
Total intangible assets, gross		632.9		631.2
Less: Accumulated amortization		273.2		232.1
Intangible assets, net of accumulated amortization	$	359.7	$	399.1

Amortization expense relating to intangible assets was $21.9 million and $43.0 million for the three and six months ended November 30, 2019, respectively, compared to $6.6 million and $13.1 million for the three and six months ended November 30, 2018, respectively.

The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during the six months ended November 30, 2019 or November 30, 2018.

As of November 30, 2019, the estimated amortization expense relating to intangible asset balances for the full year fiscal 2020 and the following four fiscal years is as follows:


$ in millions	Estimated amortization
Year ending May 31,	expense
2020	$	75.9
2021		63.9
2022		59.0
2023		54.5
2024		52.1