Earnings Per Share

12 Months Ended

May 31, 2023

Earnings per Share

Earnings per Share

7. Earnings Per Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options and shares issuable upon vesting of restricted stock awards.

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our unvested restricted stock awards are deemed participating securities since these shares are entitled to participate in dividends declared on common shares. During periods of net income, the calculation of earnings per share for common stock excludes income attributable to unvested restricted stock awards from the numerator and excludes the dilutive impact of those shares from the denominator. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

The following tables provide a reconciliation of the computations of basic and diluted earnings per share information for each of the years in the three-year period ended May 31, 2023 (shares in millions).

	For the Year Ended
	May 31,
	2023		2022		2021
Basic and Diluted EPS:
Income from continuing operations	$	89.8	$	78.5	$	46.3
Less income attributable to participating shares		(1.1)		(0.6)		(0.4)
Income from continuing operations attributable to common stockholders		88.7		77.9		45.9
Income (Loss) from discontinued operations attributable to common stockholders		0.4		0.2		(10.5)
Net income attributable to common stockholders for earnings per share	$	89.1	$	78.1	$	35.4
Weighted average common shares outstanding – basic		34.7		35.6		35.0
Additional shares from assumed exercise of stock options		0.4		0.4		0.3
Weighted average common shares outstanding – diluted		35.1		36.0		35.3
Earnings per share – basic:
Earnings from continuing operations	$	2.55	$	2.19	$	1.31
Income (Loss) from discontinued operations		0.01		0.01		(0.30)
Earnings per share - basic	$	2.56	$	2.20	$	1.01
Earnings per share – diluted:
Earnings from continuing operations	$	2.52	$	2.16	$	1.30
Income (Loss) from discontinued operations		0.01		0.01		(0.30)
Earnings per share - diluted	$	2.53	$	2.17	$	1.00

At May 31, 2023, 2022 and 2021 respectively, outstanding options to purchase 197,300, 229,800 and 1,054,400 shares of common stock were not included in the computation of diluted earnings per share, because the exercise price of these options was greater than the average market price of the common shares for the year then ended.