NOTE 3 — EARNINGS PER SHARE ("EPS")

The Company presents the computation of earnings per share on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted EPS reflects the potential dilution related to equity-based incentives (see Note 9 – Stock-Based Compensation for further discussion) using the treasury stock method. The composition of basic and diluted EPS is as follows:



	Three months ended October 31,				Nine months ended October 31,
	2018		2017		2018		2017
(in thousands, except per share data)
Net income	$	114,216	$	37,268	$	223,781	$	115,381

Weighted average common shares - basic	38,358		38,186		38,357		37,877
Effect of dilutive securities:
Equity based awards	168		247		202		228
Weighted average common shares - diluted	38,526		38,433		38,559		38,105

Earnings per share:
Basic	$	2.98	$	0.98	$	5.83	$	3.05
Diluted	$	2.96	$	0.97	$	5.80	$	3.03

For the three months ended October 31, 2018 and 2017, there were 45,072 and 15,739 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the nine months ended October 31, 2018 and 2017, there were 43,783 and 30,578 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive.