Annual report pursuant to Section 13 and 15(d)

Quarterly Financial Data (Unaudited)

v3.2.0.727
Quarterly Financial Data (Unaudited)
 12 Months Ended
May. 31, 2015
Quarterly Financial Data (Unaudited) [Abstract]  
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
In millions, except per share amounts

 
 
Three Months Ended
 
 
Fiscal 2015
 
August 31
 
November 30
 
February 28
 
May 31
 
Full Year
Service revenue
 
$
656.6

 
$
665.9

 
$
693.6

 
$
681.4

 
$
2,697.5

Interest on funds held for clients
 
10.2

 
10.4

 
10.7

 
10.8

 
42.1

Total revenue
 
$
666.8

 
$
676.3

 
$
704.3

 
$
692.2

 
$
2,739.6

Operating income
 
$
267.5

 
$
270.2

 
$
264.3

 
$
251.6

 
$
1,053.6

Investment income, net
 
1.4

 
1.4

 
1.6

 
2.0

 
6.4

Income before income taxes
 
268.9

 
271.6

 
265.9

 
253.6

 
1,060.0

Income taxes
 
97.6

 
98.6

 
96.5

 
92.4

 
385.1

Net income
 
$
171.3

 
$
173.0

 
$
169.4

 
$
161.2

 
$
674.9

Basic earnings per share(1)
 
$
0.47

 
$
0.48

 
$
0.47

 
$
0.44

 
$
1.86

Diluted earnings per share(1)
 
$
0.47

 
$
0.47

 
$
0.46

 
$
0.44

 
$
1.85

Weighted-average common shares outstanding
 
363.1

 
363.0

 
363.2

 
362.3

 
362.9

Weighted-average common shares outstanding, assuming dilution
 
364.7

 
364.6

 
365.0

 
364.5

 
364.6

Cash dividends per common share
 
$
0.38

 
$
0.38

 
$
0.38

 
$
0.38

 
$
1.52

Total net realized gains(2)
 
$
0.1

 
$
0.1

 
$
—

 
$
0.1

 
$
0.3

 
 
 
Three Months Ended
 
 
Fiscal 2014
 
August 31
 
November 30
 
February 28
 
May 31
 
Full Year
Service revenue (3)
 
$
603.1

 
$
606.4

 
$
639.9

 
$
628.8

 
$
2,478.2

Interest on funds held for clients
 
10.0

 
10.0

 
10.5

 
10.2

 
40.7

Total revenue (3)
 
$
613.1

 
$
616.4

 
$
650.4

 
$
639.0

 
$
2,518.9

Operating income
 
$
255.1

 
$
248.6

 
$
250.7

 
$
228.3

 
$
982.7

Investment income, net
 
1.2

 
1.3

 
1.5

 
1.4

 
5.4

Income before income taxes
 
256.3

 
249.9

 
252.2

 
229.7

 
988.1

Income taxes
 
93.5

 
91.2

 
92.1

 
83.8

 
360.6

Net income
 
$
162.8

 
$
158.7

 
$
160.1

 
$
145.9

 
$
627.5

Basic earnings per share(1)
 
$
0.45

 
$
0.43

 
$
0.44

 
$
0.40

 
$
1.72

Diluted earnings per share(1)
 
$
0.44

 
$
0.43

 
$
0.44

 
$
0.40

 
$
1.71

Weighted-average common shares outstanding
 
365.3

 
364.9

 
364.2

 
363.5

 
364.5

Weighted-average common shares outstanding, assuming dilution
 
366.7

 
366.4

 
365.8

 
365.3

 
366.1

Cash dividends per common share
 
$
0.35

 
$
0.35

 
$
0.35

 
$
0.35

 
$
1.40

Total net realized gains(2)
 
$
0.2

 
$
—

 
$
0.3

 
$
0.1

 
$
0.6

(1) 
Each quarter is a discrete period and the sum of the four quarters’ basic and diluted earnings per share amounts may not equal the full year amount.
(2) 
Total net realized gains on the combined funds held for clients and corporate investment portfolios.
(3) 
With the introduction of the new health insurance offering within the PEO during fiscal 2014, the Company began classifying PEO direct costs related to certain benefit plans where the Company retains risk as operating expenses rather than as a reduction in service revenue. As a result, the amounts reported for service revenue and total revenue for the first through third quarters of fiscal 2014 differ from that reported in the Company's Quarterly Reports on Form 10-Q (“Form 10-Q”). There was no impact to operating income from this change. The correction for the PEO direct cost adjustment was not material to any prior interim period in fiscal 2014. Service revenue, as reported in the Company's Form 10-Qs was $597.9 million, $600.5 million, and $626.0 million for the first, second, and third fiscal quarters of fiscal 2014, respectively. Total revenue, as reported in the Company's Form 10-Qs was $607.9 million, $610.5 million, and $636.5 million for the first, second, and third fiscal quarters of fiscal 2014, respectively.