Paychex, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Basic and Diluted Earnings Per Share

Basic and Diluted Earnings Per Share

9 Months Ended

Feb. 29, 2016

Basic and diluted earnings per share were calculated as follows:



	For the three months ended				For the nine months ended
In millions, except per share amounts	February 29, 2016		February 28, 2015		February 29, 2016		February 28, 2015
Basic earnings per share:
Net income	$	180.4	$	169.4	$	578.7	$	513.7
Weighted-average common shares outstanding	360.5		363.2		360.8		363.1
Basic earnings per share	$	0.50	$	0.47	$	1.60	$	1.41
Diluted earnings per share:
Net income	$	180.4	$	169.4	$	578.7	$	513.7
Weighted-average common shares outstanding	360.5		363.2		360.8		363.1
Dilutive effect of common share equivalents	1.7		1.8		1.6		1.7
Weighted-average common shares outstanding, assuming dilution	362.2		365.0		362.4		364.8
Diluted earnings per share	$	0.50	$	0.46	$	1.60	$	1.41
Weighted-average anti-dilutive common share equivalents	0.7		—		0.7		0.4

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

For the three months ended February 29, 2016 and February 28, 2015, 0.1 million and 0.5 million shares, respectively, of the Company’s common stock were issued in connection with the exercise or vesting of stock-based awards. For the nine months ended February 29, 2016 and February 28, 2015, 1.2 million and 1.9 million shares, respectively, of the Company’s common stock were issued in connection with the exercise or vesting of stock-based awards.

In May 2014, the Board of Directors approved a program to repurchase up to $350 million of the Company's common stock, with authorization expiring on May 31, 2017. During the three and nine months ended February 29, 2016, the Company repurchased 0.9 million shares for $45.0 million and 2.2 million shares for $107.9 million, respectively. During the three and nine months ended February 28, 2015, the Company repurchased 0.4 million shares for $17.9 million and 1.7 million shares for $70.4 million, respectively. Shares repurchased were retired.