Earnings Per Share

3 Months Ended

Feb. 28, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Earnings Per Share

Earnings Per Share

Basic and diluted earnings per share were calculated as follows (in thousands, except per share amounts):

	Three Months Ended February 28,
	2015			2014
Numerator:
Net income	$	7,799		$	10,563
Less: Distributed earnings allocated to nonvested restricted stock	(9		)	(5		)
Less: Undistributed earnings allocated to nonvested restricted stock	(20		)	(22		)
Numerator for basic earnings per share	7,770			10,536
Effect of dilutive securities:
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes	667			667
Add: Undistributed earnings allocated to nonvested restricted stock	20			22
Less: Undistributed earnings reallocated to nonvested restricted stock	(18		)	(20		)
Numerator for diluted earnings per share	$	8,439		$	11,205

	Three Months Ended February 28,
	2015		2014
Denominator:
Weighted average shares outstanding — basic	91,954		83,745
Effect of dilutive securities:
Share-based payments	1,344		1,799
Convertible senior notes	8,402		8,402
Weighted average shares outstanding — diluted	101,700		93,946
Basic earnings per share	$	.08	$	.13
Diluted earnings per share	$	.08	$	.12

We compute earnings per share using the two-class method, which 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 February 28, 2015 or 2014.

Outstanding stock options to purchase 8.2 million and 5.2 million shares of common stock were excluded from the diluted earnings per share calculations for the three-month periods ended February 28, 2015 and 2014, respectively, 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 months ended February 28, 2015 and 2014 as the vesting conditions had not been satisfied.