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Earnings (Loss) Per Share
9 Months Ended
Aug. 31, 2014
Earnings Per Share, Basic and Diluted [Abstract]  
Earnings (Loss) Per Share
Earnings Per Share

Basic and diluted earnings per share were calculated as follows (in thousands, except per share amounts): 
 
 
Nine Months Ended August 31,
 
Three Months Ended August 31,
 
 
2014
 
2013
 
2014
 
2013
Numerator:
 
 
 
 
 
 
 
 
Net income
 
$
65,548

 
$
11,847

 
$
28,361

 
$
27,278

Less: Distributed earnings allocated to nonvested restricted stock
 
(18
)
 
(18
)
 
(6
)
 
(6
)
Less: Undistributed earnings allocated to nonvested restricted stock
 
(159
)
 
(16
)
 
(73
)
 
(73
)
Numerator for basic earnings per share
 
65,371

 
11,813

 
28,282

 
27,199

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes
 
2,000

 

 
667

 
667

Add: Undistributed earnings allocated to nonvested restricted stock
 
159

 
16

 
73

 
73

Less: Undistributed earnings reallocated to nonvested restricted stock
 
(142
)
 
(14
)
 
(66
)
 
(65
)
Numerator for diluted earnings per share
 
$
67,388

 
$
11,815

 
$
28,956

 
$
27,874

Denominator:
 
 
 
 
 
 
 
 
Weighted average shares outstanding — basic
 
88,389

 
82,261

 
91,793

 
83,714

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Share-based payments
 
1,823

 
2,028

 
1,875

 
1,931

Convertible senior notes
 
8,402

 

 
8,402

 
8,402

Weighted average shares outstanding — diluted
 
98,614

 
84,289

 
102,070

 
94,047

Basic earnings per share
 
$
.74

 
$
.14

 
$
.31

 
$
.32

Diluted earnings per share
 
$
.68

 
$
.14

 
$
.28

 
$
.30


We compute earnings per share using the two-class method in accordance with Accounting Standards Codification Topic No. 260, “Earnings Per Share.” The two-class method is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding nonvested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at August 31, 2014 or 2013.
In the first quarter of 2013, we issued $230.0 million in aggregate principal amount of 1.375% convertible senior notes due 2019 (the “1.375% Convertible Senior Notes due 2019”), which are initially convertible into shares of our common stock at a conversion rate of 36.5297 shares for each $1,000 principal amount of the notes. The impact of the 1.375% Convertible Senior Notes due 2019 was excluded from the diluted earnings per share calculation for the nine months ended August 31, 2013 because the effect would have been antidilutive.
Outstanding stock options to purchase 5.2 million shares of common stock were excluded from the diluted earnings per share calculation for the three-month and nine-month periods ended August 31, 2014 and 2013 because the effect of their inclusion would be antidilutive. Contingently issuable shares associated with outstanding performance-based restricted stock units (each a “PSU”) were not included in the earnings per share calculations for the three-month and nine-month periods ended August 31, 2014 and 2013 as the vesting conditions had not been satisfied.