Paychex 2016 Annual Report Download - page 62

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
effective for public business entities for annual periods, including interim periods within those annual periods,
beginning after December 15, 2016, with early application permitted. This guidance is applicable to the
Company’s fiscal year beginning June 1, 2017. The Company does not anticipate this to be material to its
consolidated financial statements, and anticipates adopting this standard for its fiscal year beginning June 1,
2016.
In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” ASU No. 2016-02 improves
transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance
sheet and by disclosing key information about leasing arrangements. ASU No. 2016-02 is effective for public
business entities for annual periods, including interim periods within those annual periods, beginning after
December 15, 2018, with early application permitted. This guidance is applicable to the Company’s fiscal year
beginning June 1, 2019. The Company is currently evaluating this guidance to determine the potential impact on
its consolidated financial statements.
In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments — Overall (Subtopic 825-
10) — Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU No. 2016-01 provides
updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and
liabilities. ASU No. 2016-01 is effective for public business entities for annual and interim periods beginning
after December 15, 2017, with early application permitted. This guidance is applicable to the Company’s fiscal
year beginning June 1, 2018. The Company is currently evaluating this guidance to determine the potential
impact on its consolidated financial statements.
Other recent authoritative guidance issued by the FASB (including technical corrections to the FASB
Accounting Standards Codification), the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission (“SEC”) did not, or are not expected to have a material effect on the Company’s
consolidated financial statements.
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 2016 2015 2014
Basic earnings per share:
Net income ............................................... $756.8 $674.9 $627.5
Weighted-average common shares outstanding ................... 360.7 362.9 364.5
Basic earnings per share ..................................... $ 2.10 $ 1.86 $ 1.72
Diluted earnings per share:
Net income ............................................... $756.8 $674.9 $627.5
Weighted-average common shares outstanding ................... 360.7 362.9 364.5
Dilutive effect of common share equivalents ..................... 1.8 1.7 1.6
Weighted-average common shares outstanding, assuming dilution . . . 362.5 364.6 366.1
Diluted earnings per share ................................... $ 2.09 $ 1.85 $ 1.71
Weighted-average anti-dilutive common share equivalents ........ 0.5 0.3 0.7
Weighted-average common share equivalents that had an anti-dilutive impact are excluded from the
computation of diluted earnings per share.
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