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Earnings Per Share
3 Months Ended
Feb. 29, 2020
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 29, 2020
 
February 28, 2019
Numerator:
 
 
 
 
Net income
 
$
59,748

 
$
30,011

Less: Distributed earnings allocated to nonvested restricted stock
 
(44
)
 
(14
)
Less: Undistributed earnings allocated to nonvested restricted stock
 
(281
)
 
(176
)
Numerator for basic earnings per share
 
59,423

 
29,821


 
 
Three Months Ended
 
 
February 29, 2020
 
February 28, 2019
Effect of dilutive securities:
 
 
 
 
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes
 

 
541

Add: Undistributed earnings allocated to nonvested restricted stock
 
281

 
176

Less: Undistributed earnings reallocated to nonvested restricted stock
 
(268
)
 
(158
)
Numerator for diluted earnings per share
 
$
59,436

 
$
30,380

 
 
 
 
 
Denominator:
 
 
 
 
Weighted average shares outstanding — basic
 
89,842

 
86,972

Effect of dilutive securities:
 
 
 
 
Share-based payments
 
4,363

 
4,202

Convertible senior notes
 

 
5,788

Weighted average shares outstanding — diluted
 
94,205

 
96,962

Basic earnings per share
 
$
.66

 
$
.34

Diluted earnings per share
 
$
.63

 
$
.31


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 29, 2020 or February 28, 2019.
For the three months ended February 29, 2020, no outstanding stock options were excluded from the diluted earnings per share calculation. For the three-month period ended February 28, 2019, outstanding stock options to purchase .8 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 three months ended February 28, 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 these notes at their February 1, 2019 maturity.
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.