Earnings Per Share

6 Months Ended

Feb. 28, 2023

EARNINGS PER SHARE

Basic earnings per share ("Basic EPS") is computed by dividing net income by the number of weighted average common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") is computed using the treasury stock method, by dividing net income by the cumulative weighted average common shares that are outstanding or are issuable upon the exercise of outstanding stock-based compensation awards during the period. Stock-based compensation awards that are out-of-the-money and performance share units ("PSUs") in which the performance criteria have not been met as of the end of the respective reporting period are omitted from the calculation of Diluted EPS.

A reconciliation of the weighted average shares outstanding used in the Basic and Diluted EPS computation is as follows:


	Three Months Ended				Six Months Ended
	February 28,				February 28,
(in thousands, except per share data)	2023		2022		2023		2022
Numerator
Net income used for calculating Basic and Diluted EPS	$	131,593	$	109,938	$	268,391	$	217,585
Denominator
Weighted average common shares used in the calculation of Basic EPS	38,281		37,837		38,201		37,685
Common stock equivalents associated with stock-based compensation plan(1)	700		924		746		943
Shares used in the calculation of Diluted EPS	38,981		38,761		38,947		38,628
Basic EPS	$	3.44	$	2.91	$	7.03	$	5.77
Diluted EPS	$	3.38	$	2.84	$	6.89	$	5.63

(1)Dilutive potential common shares consist of stock options and unvested PSUs. As of February 28, 2023 we excluded 543,082 common stock equivalents related to stock options and as of February 28, 2022, we did not exclude any common stock equivalents related to stock options from our calculation of Diluted EPS. As of February 28, 2023 and February 28, 2022, we excluded a respective 93,308 and 95,865 common stock equivalents related to PSUs from our calculation of Diluted EPS.