Earnings Per Share

3 Months Ended

Feb. 28, 2017

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 28, 2017			February 29, 2016
Numerator:
Net income	$	14,259		$	13,127
Less: Distributed earnings allocated to nonvested restricted stock	(15		)	(10		)
Less: Undistributed earnings allocated to nonvested restricted stock	(85		)	(50		)
Numerator for basic earnings per share	14,159			13,067
Effect of dilutive securities:
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes	663			667
Add: Undistributed earnings allocated to nonvested restricted stock	85			50
Less: Undistributed earnings reallocated to nonvested restricted stock	(75		)	(45		)
Numerator for diluted earnings per share	$	14,832		$	13,739

	Three Months Ended
	February 28, 2017		February 29, 2016
Denominator:
Weighted average shares outstanding — basic	85,122		89,239
Effect of dilutive securities:
Share-based payments	2,749		1,786
Convertible senior notes	8,402		8,402
Weighted average shares outstanding — diluted	96,273		99,427
Basic earnings per share	$	.17	$	.15
Diluted earnings per share	$	.15	$	.14

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 28, 2017 or February 29, 2016.

Outstanding stock options to purchase 5.1 million and 9.7 million shares of our common stock were excluded from the diluted earnings per share calculations for the three months ended February 28, 2017 and February 29, 2016, respectively, 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.