Earnings per Share

3 Months Ended

Jul. 31, 2022

We computed net income per common share (“basic earnings per share”) under the two-class method for the three months ended July 31, 2022 and 2021, due to certain unvested common shares that contained non-forfeitable rights to dividends (i.e., participating securities) during these periods. For the three months ended July 31, 2022, the computation of net income per common share – assuming dilution (“diluted earnings per share”) was more dilutive under the treasury stock method, as compared to the two-class method; therefore, the treasury stock method was used in accordance with FASB ASC 260, Earnings Per Share. Diluted earnings per share for the three months ended July 31, 2021 was computed under the two-class method.

The following table sets forth the computation of basic earnings per share and diluted earnings per share under the two-class method.


	Three Months Ended July 31,
		2022		2021
Net income		$	109.8	$	153.9
Less: Net income allocated to participating securities		0.2		0.5
Net income allocated to common stockholders		$	109.6	$	153.4
Weighted-average common shares outstanding		106.3		108.0
Add: Dilutive effect of stock options		0.1		0.1
Weighted-average common shares outstanding – assuming dilution		106.4		108.1
Net income per common share		$	1.03	$	1.42
Net income per common share – assuming dilution		$	1.03	$	1.42

The following table sets forth the computation of diluted earnings per share under the treasury stock method for the three months ended July 31, 2022.


Net income	$	109.8
Weighted-average common shares outstanding – assuming dilution:
Weighted-average common shares outstanding	106.3
Add: Dilutive effect of stock options	0.1
Add: Dilutive effect of restricted shares, restricted stock units, and performance units	0.4
Weighted-average common shares outstanding – assuming dilution	106.8
Net income per common share – assuming dilution	$	1.03