Paychex, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Basic and Diluted Earnings Per Share

Basic and Diluted Earnings Per Share

12 Months Ended

May 31, 2019

Basic and Diluted Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

Note C — Basic and Diluted Earnings Per Share

Basic and diluted earnings per share were calculated as follows:



	Year ended May 31,
			2018		2017
In millions, except per share amounts	2019		As Adjusted(1)		As Adjusted(1)
Basic earnings per share:
Net income	$	1,034.4	$	994.1	$	826.3
Weighted-average common shares outstanding		359.2		359.0		359.8
Basic earnings per share	$	2.88	$	2.77	$	2.30
Diluted earnings per share:
Net income	$	1,034.4	$	994.1	$	826.3
Weighted-average common shares outstanding		359.2		359.0		359.8
Dilutive effect of common share equivalents		2.6		2.5		2.8
Weighted-average common shares outstanding, assuming dilution		361.8		361.5		362.6
Diluted earnings per share	$	2.86	$	2.75	$	2.28
Weighted-average anti-dilutive common share equivalents		0.4		0.7		0.7

(1) Amounts have been adjusted to reflect the adoption of ASC Topic 606.

Weighted-average common share equivalents that had an anti-dilutive impact are excluded from the computation of diluted earnings per share.

The Company maintained a program to repurchase up to $350.0 million of the Company's common stock, with authorization that expired on May 31, 2019. During fiscal 2019 and fiscal 2018, the Company repurchased 0.7 million shares for $56.9 million and 2.5 million shares for $143.1 million, respectively, under this repurchase program. All shares repurchased were retired. In May 2019, the Company announced that its Board approved a program to repurchase up to $400.0 million of the Company’s common stock, with authorization running from June 1, 2019 through May 31, 2022. The purpose of these programs is to manage common stock dilution.