Net Income per Common Share

9 Months Ended

Oct. 31, 2019

Net Income per Common Share

Net Income per Common Share

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 is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards and unexercised stock options outstanding during the period. Approximately 846,200 and 344,000 unvested shares of common stock have been excluded from the diluted net income per share calculation for the three months ended October 31, 2019 and 2018, respectively. Approximately 680,700 and 330,000 unvested shares of common stock have been excluded from the diluted net income per share calculation for the nine months ended October 31, 2019 and 2018, 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,
	2019		2018		2019		2018
	(In thousands, except per share amounts)
Net income	$	95,387	$	94,025	$	118,549	$	113,987
Basic net income per share:
Basic common shares		47,768		49,231		48,333		49,176
Basic net income per share	$	2.00	$	1.91	$	2.45	$	2.32
Diluted net income per share:
Basic common shares		47,768		49,231		48,333		49,176
Diluted restricted stock unit awards and stock options		588		1,263		723		1,169
Diluted common shares		48,356		50,494		49,056		50,345
Diluted net income per share	$	1.97	$	1.86	$	2.42	$	2.26