Earnings per share

3 Months Ended

Feb. 28, 2022

We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data):


	Three Months Ended
	February 28, 2022		February 28, 2021
Net income	$	20,454	$	18,961
Weighted average shares outstanding	43,981		44,108
Basic earnings per common share	0.47		0.43

Diluted earnings per common share:
Net income	20,454		18,961
Weighted average shares outstanding	43,981		44,108
Effect of dilution from common stock equivalents	727		544
Diluted weighted average shares outstanding	44,708		44,652
Diluted earnings per share	$	0.46	$	0.42

We excluded stock awards representing approximately 1,536,000 and 1,078,000 shares of common stock from the calculation of diluted earnings per share in the three months ended February 28, 2022 and February 28, 2021, respectively, as these awards were anti-dilutive.

As a result of our adoption of ASU 2020-06 on December 1, 2021, the dilutive impact of the Notes on our calculation of diluted net income per share is considered using the if-converted method. However, because the principal amount of the Notes must be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any, of the Notes. During the three months ended February 28, 2022, we did not include the Notes in our diluted earnings per share calculation because the conversion feature in the Notes was out of the money. For periods prior to our December 1, 2021 adoption of ASU 2020-06, we applied the treasury stock method to account for the dilutive impact of the Notes for diluted earnings per share purposes.