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

3 Months Ended

Aug. 31, 2016

Basic and Diluted Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

Note B: Basic and Diluted Earnings Per Share

Basic and diluted earnings per share were calculated as follows:



	For the three months ended
	August 31,
In millions, except per share amounts	2016		2015
Basic earnings per share:
Net income	$	217.4	$	209.1
Weighted-average common shares outstanding		361.0		361.1
Basic earnings per share	$	0.60	$	0.58
Diluted earnings per share:
Net income	$	217.4	$	209.1
Weighted-average common shares outstanding		361.0		361.1
Dilutive effect of common share equivalents		3.1		1.7
Weighted-average common shares outstanding, assuming dilution		364.1		362.8
Diluted earnings per share	$	0.60	$	0.58
Weighted-average anti-dilutive common share equivalents		0.5		0.5

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 August 31, 2016 and 2015, 1.3 million and 0.7 million shares, respectively, of the Company’s common stock were issued in connection with the exercise or vesting of stock-based awards.

The Company currently maintains two stock repurchase programs: the first authorized in May 2014 and expiring May 31, 2017, the second authorized in July 2016 and expiring May 31, 2019. Under each program, the Board of Directors has approved the repurchase of up to $350.0 million of the Company's common stock. The purpose of both programs is to manage common stock dilution. During the three months ended August 31, 2016, the Company did not repurchase any of its common stock under either program. During the three months ended August 31, 2015, the Company repurchased 1.3 million shares for $62.9 million under the May 2014 plan. Shares repurchased were retired.