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

Basic and Diluted Earnings Per Share

12 Months Ended

May 31, 2011


Note B —	Basic and Diluted Earnings Per Share

Basic and diluted earnings per share were calculated as follows:


	Year ended May 31,
In millions, except per share amounts	2011		2010		2009

Basic earnings per share:
Net income	$	515.3	$	477.0	$	533.5
Weighted-average common shares outstanding		361.8		361.4		360.8

Basic earnings per share	$	1.42	$	1.32	$	1.48

Diluted earnings per share:
Net income	$	515.3	$	477.0	$	533.5
Weighted-average common shares outstanding		361.8		361.4		360.8
Dilutive effect of common share equivalents at average market price		0.6		0.3		0.2

Weighted-average common shares outstanding, assuming dilution		362.4		361.7		361.0

Diluted earnings per share	$	1.42	$	1.32	$	1.48

Weighted-average anti-dilutive common share equivalents		11.5		13.0		13.5

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