Earnings per Share

3 Months Ended

May 31, 2016

Note 4 – Earnings per Share

We compute basic earnings per share using the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share using the weighted average number of shares of common stock outstanding plus the effect of dilutive securities. Dilutive securities at any given point in time may consist of outstanding stock options, issued and contingently issuable unvested restricted share units (“RSUs”), and performance-based restricted share units (“PSUs”). Options for common stock are excluded from the computation of diluted earnings per share if their effect is antidilutive. See Note 15 to these consolidated condensed financial statements for more information regarding share-based payment awards.

For the periods covered below, the basic and diluted shares are as follows:

WEIGHTED AVERAGE DILUTED SECURITIES

(in thousands)


	Three Months Ended May 31,
	2016	2015
Weighted average shares outstanding, basic	27,773	28,520
Incremental shares from share-based payment arrangements	374	568
Weighted average shares outstanding, diluted	28,147	29,088

Dilutive securities, stock options	425	798
Dilutive securities, unvested or unsettled stock awards	333	294
Antidilutive securities, stock options	143	197