Earnings Per Share

3 Months Ended

Nov. 30, 2012

Earnings Per Share

Note 8. Earnings Per Share

The reconciliations between basic and diluted earnings per share are as follows (in thousands, except per share amounts):

	Three Months Ended November 30,
	2012		2011
Numerator:
Net earnings from continuing operations	$	36,343	$	37,174
Plus: 2% Convertible Notes financing costs, net of taxes		—		511
Net earnings for diluted earnings per share	$	36,343	$	37,685
Denominator:
Weighted average common shares outstanding for basic earnings per share		72,791		68,421
Net effect of dilutive securities—equity based compensation plans		1,480		764
Net effect of 2% Convertible Notes based on the if-converted method		—		5,957
Weighted average common and equivalent shares outstanding for diluted earnings per share		74,271		75,142
Basic Earnings Per Share:	$	0.50	$	0.54
Diluted Earnings Per Share:	$	0.49	$	0.50

At November 30, 2012 and 2011, outstanding share based awards to acquire 789,000 and 3,856,000 shares of common stock were not included in the Company’s computation of earnings per share because the effect would have been anti-dilutive.

As discussed in Note 6, “Debt” the Company issued 5,951,440 shares of common stock in the third quarter of fiscal 2012, in conjunction with the conversion of its 2% Convertible Notes, resulting in an increase in the weighted average common shares outstanding for basic earnings per share. However, the impact of the additional share issuance was already included in the diluted earnings per share calculation, on an if-converted method. The Company has also repurchased common shares on the open market in the last year, as well as issued new shares pursuant to equity compensation plans.