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

6 Months Ended

Nov. 30, 2015

Basic and diluted earnings per share were calculated as follows:



	For the three months ended November 30,				For the six months ended November 30,
In millions, except per share amounts	2015		2014		2015		2014
Basic earnings per share:
Net income	$	189.2	$	173.0	$	398.3	$	344.3
Weighted-average common shares outstanding	360.7		363.0		360.9		363.1
Basic earnings per share	$	0.52	$	0.48	$	1.10	$	0.95
Diluted earnings per share:
Net income	$	189.2	$	173.0	$	398.3	$	344.3
Weighted-average common shares outstanding	360.7		363.0		360.9		363.1
Dilutive effect of common share equivalents	1.6		1.6		1.7		1.5
Weighted-average common shares outstanding, assuming dilution	362.3		364.6		362.6		364.6
Diluted earnings per share	$	0.52	$	0.47	$	1.10	$	0.94
Weighted-average anti-dilutive common share equivalents	0.8		0.8		0.6		0.6

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 November 30, 2015 and 2014, 0.4 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. For the six months ended November 30, 2015 and 2014, 1.1 million and 1.4 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. No shares were repurchased during the three months ended November 30, 2015. During the six months ended November 30, 2015, the Company repurchased 1.3 million shares for $62.9 million. During the three and six months ended November 30, 2014, the Company repurchased 0.4 million shares for $15.0 million and 1.3 million shares for $52.5 million, respectively. Shares repurchased were retired.