Note 5 – Net Income per Common Share

Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock awards and stock options outstanding during the period. Approximately 344,000 and 1,000,000 shares of common stock have been excluded from the diluted net income per share calculation for the three months ended October 31, 2018 and 2017, respectively. Approximately 330,000 and 1,100,000 shares of common stock have been excluded from the diluted net income per share calculation for the nine months ended October 31, 2018 and 2017, respectively. All share-based payments outstanding that vest based on the achievement of performance and/or market price conditions, and for which the respective performance and/or market price conditions have not been achieved, have been excluded from the diluted per share calculation.

The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share:


	Three Months Ended October 31,				Nine Months Ended October 31,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Net income	$	94,025	$	81,625	$	113,987	$	62,666
Basic net income per share:
Basic common shares		49,231		48,846		49,176		48,729
Basic net income per share	$	1.91	$	1.67	$	2.32	$	1.29

Diluted net income per share:
Basic common shares		49,231		48,846		49,176		48,729
Diluted restricted stock awards and stock options		1,263		682		1,169		681
Diluted common shares		50,494		49,528		50,345		49,410
Diluted net income per share	$	1.86	$	1.65	$	2.26	$	1.27