Paychex 2014 Annual Report Download - page 82

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note O — Quarterly Financial Data (Unaudited)
In millions, except per share amounts
With the introduction of a 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. This had no impact on operating income. The amounts
below for service revenue and total revenue for fiscal 2014 reflect this change in classification.
Three Months Ended
Fiscal 2014 August 31 November 30 February 28 May 31 Full Year
Service revenue(1) ........................... $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(1) ............................ 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(2) .................... $ 0.45 $ 0.43 $ 0.44 $ 0.40 $ 1.72
Diluted earnings per share(2) .................. $ 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(3) ..................... $ 0.2 $ — $ 0.3 $ 0.1 $ 0.6
Three Months Ended
Fiscal 2013 August 31 November 30 February 28 May 31(4) Full Year
Service revenue ............................ $568.1 $559.4 $582.4 $575.3 $2,285.2
Interest on funds held for clients ............... 10.1 10.0 10.9 10.0 41.0
Total revenue .............................. 578.2 569.4 593.3 585.3 2,326.2
Operating income .......................... 238.0 230.0 225.0 211.8 904.8
Investment income, net ...................... 1.9 1.9 1.4 1.4 6.6
Income before income taxes .................. 239.9 231.9 226.4 213.2 911.4
Income taxes .............................. 86.8 84.0 81.9 89.7 342.4
Net income ................................ $153.1 $147.9 $144.5 $123.5 $ 569.0
Basic earnings per share(2) .................... $ 0.42 $ 0.41 $ 0.40 $ 0.34 $ 1.56
Diluted earnings per share(2) .................. $ 0.42 $ 0.41 $ 0.40 $ 0.34 $ 1.56
Weighted-average common shares outstanding . . . 363.0 363.6 363.8 364.6 363.8
Weighted-average common shares outstanding,
assuming dilution ......................... 363.8 364.4 364.6 365.9 364.7
Cash dividends per common share(5) ............ $ 0.32 $ 0.33 $ 0.66 $ — $ 1.31
Total net realized gains(3) ..................... $ 0.2 $ 0.1 $ 0.6 $ — $ 0.9
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