Earnings Per Share

9 Months Ended

Aug. 31, 2019

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 August 31,						Nine Months Ended August 31,
	2019			2018			2019			2018
Numerator:
Net income	$	68,136		$	87,476		$	145,608		$	73,529
Less: Distributed earnings allocated to nonvested restricted stock	(48		)	(12		)	(76		)	(37		)
Less: Undistributed earnings allocated to nonvested restricted stock	(365		)	(472		)	(825		)	(388		)
Numerator for basic earnings per share	67,723			86,992			144,707			73,104

	Three Months Ended August 31,						Nine Months Ended August 31,
	2019			2018			2019			2018
Effect of dilutive securities:
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes	—			796			541			2,389
Add: Undistributed earnings allocated to nonvested restricted stock	365			472			825			388
Less: Undistributed earnings reallocated to nonvested restricted stock	(354		)	(416		)	(769		)	(335		)
Numerator for diluted earnings per share	$	67,734		$	87,844		$	145,304		$	75,546
Denominator:
Weighted average shares outstanding — basic	88,262			87,951			87,630			87,565
Effect of dilutive securities:
Share-based payments	4,580			4,719			4,501			5,246
Convertible senior notes	—			8,402			1,901			8,402
Weighted average shares outstanding — diluted	92,842			101,072			94,032			101,213
Basic earnings per share	$	.77		$	.99		$	1.65		$	.83
Diluted earnings per share	$	.73		$	.87		$	1.55		$	.75

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 August 31, 2019 or 2018.

For the three-month and nine-month periods ended August 31, 2019, outstanding stock options to purchase .6 million shares of our common stock were excluded from the diluted earnings per share calculation because the effect of their inclusion would be antidilutive. The diluted earnings per share calculation for the nine months ended August 31, 2019 included the dilutive effect of the $230.0 million in aggregate principal amount of our 1.375% convertible senior notes due 2019 (“1.375% Convertible Senior Notes due 2019”) based on the number of days they were outstanding during the period. We repaid the notes at their February 1, 2019 maturity.

For the three-month and nine-month periods ended August 31, 2018, outstanding stock options to purchase 1.6 million shares of our common stock were excluded from the diluted earnings per share calculation 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 basic earnings per share calculations for the periods presented as the applicable vesting conditions had not been satisfied.