Earnings Per Share

9 Months Ended

May 31, 2023

EARNINGS PER SHARE

Basic earnings per share ("Basic EPS") is computed by dividing net income by the number of weighted average common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") is computed using the treasury stock method, by dividing net income by the cumulative weighted average common shares that are outstanding or are issuable upon the exercise of outstanding stock-based compensation awards during the period. Stock-based compensation awards that are out-of-the-money and performance share units ("PSUs") in which the performance criteria have not been met as of the end of the respective reporting period are omitted from the calculation of Diluted EPS.

A reconciliation of the weighted average shares outstanding used in the Basic EPS and Diluted EPS computation is as follows:


	Three Months Ended				Nine Months Ended
	May 31,				May 31,
(in thousands, except per share data)	2023		2022		2023		2022
Numerator
Net income used for calculating Basic EPS and Diluted EPS	$	134,663	$	74,910	$	403,054	$	292,495
Denominator
Weighted average common shares used in the calculation of Basic EPS	38,278		37,934		38,227		37,716
Common stock equivalents associated with stock-based compensation plan(1)	634		786		709		891
Shares used in the calculation of Diluted EPS	38,912		38,720		38,936		38,607
Basic EPS	$	3.52	$	1.97	$	10.54	$	7.76
Diluted EPS	$	3.46	$	1.93	$	10.35	$	7.58

(1)Dilutive potential common shares consist of stock options and unvested PSUs. As of May 31, 2023 and May 31, 2022, we excluded 583,377 and 291,716 common stock equivalents related to stock options from our calculation of Diluted EPS, respectively. As of May 31, 2023 and May 31, 2022, we excluded a respective 93,230 and 95,359 common stock equivalents related to PSUs from our calculation of Diluted EPS.