Earnings per share

6 Months Ended

May 31, 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				Six Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Net income	$	29,110	$	13,557	$	49,564	$	32,518
Weighted average shares outstanding	43,575		43,818		43,778		43,963
Basic earnings per common share	$	0.67	$	0.31	$	1.13	$	0.74

Diluted earnings per common share:
Net income	$	29,110	$	13,557	$	49,564	$	32,518
Weighted average shares outstanding	43,575		43,818		43,778		43,963
Effect of dilution from common stock equivalents	678		654		702		599
Diluted weighted average shares outstanding	44,253		44,472		44,480		44,562
Diluted earnings per share	$	0.66	$	0.30	$	1.11	$	0.73

We excluded stock awards representing approximately 1,904,000 and 1,720,000 shares of common stock from the calculation of diluted earnings per share in the three and six months ended May 31, 2022, respectively, as these awards were anti-dilutive. In the three and six months ended May 31, 2021, we excluded stock awards representing 1,396,000 shares and 1,237,000 shares of common stock, respectively, from the calculation of diluted earnings per share as they 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 and six months ended May 31, 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.