A Dark Vector Cognition product

Item 6. Selected Financial Data

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Item 6. Selected Financial Data

In millions, except per share amounts
Year ended May 31,2016 (1)20152014 (2), (4)2013 (3), (4)2012 (4)
Service revenue$2,905.8$2,697.5$2,478.2$2,285.2$2,186.2
Interest on funds held for clients$46.1$42.1$40.7$41.0$43.6
Total revenue$2,951.9$2,739.6$2,518.9$2,326.2$2,229.8
Operating income$1,146.6$1,053.6$982.7$904.8$853.9
Net income$756.8$674.9$627.5$569.0$548.0
Basic earnings per share$2.10$1.86$1.72$1.56$1.51
Diluted earnings per share$2.09$1.85$1.71$1.56$1.51
Cash dividends per common share$1.68$1.52$1.40$1.31$1.27
Purchases of property and equipment$97.7$102.8$84.1$98.7$89.6
Cash and total corporate investments$793.2$936.4$936.8$874.6$790.0
Total assets$6,440.8$6,467.5$6,321.0$6,127.3$6,448.8
Total debt$—$—$—$—$—
Stockholders’ equity$1,911.7$1,785.5$1,777.0$1,773.7$1,604.5
Return on stockholders’ equity40%36%35%34%34%
(1)In the first quarter of fiscal 2016, a net tax benefit was recorded for income derived in prior tax years from customer-facing software we produced. This increased full-year diluted earnings per share by approximately $0.05 per share.
(2)With the introduction of a new health care offering within the PEO during the fiscal year ended May 31, 2014, the Company began to recognize certain PEO direct costs as operating expenses rather than as a reduction in service revenue. In the table above, this impacted service revenue and total revenue, but had no impact on operating income.
(3)In the fourth quarter of the fiscal year ended May 31, 2013, the Company increased its tax provision related to the settlement of a state income tax matter. This reduced diluted earnings per share by approximately $0.04 per share.
(4)With the adoption of Financial Accounting Standards Board Accounting Standards Update No. 2015-17 “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes” during fiscal 2016, the reclassification of prior year deferred tax amounts was made on the Consolidated Balance Sheets to conform to the current period presentation. In the table above, a similar reclassification was made, which impacted total assets. Refer to Note A of the Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K for further details on this recently adopted accounting pronouncement.

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