Net Income per Share

9 Months Ended

Jul. 31, 2020

Net Income Per Share

The Company computes basic net income per share by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the dilution from potential common shares outstanding such as stock options and unvested restricted stock units and awards during the period using the treasury stock method.

The table below reconciles the weighted average common shares used to calculate basic net income per share with the weighted average common shares used to calculate diluted net income per share:



	Three Months Ended July 31,				Nine Months Ended July 31,
	2020		2019		2020		2019
	(in thousands, except per share amounts)
Numerator:
Net income	$	252,911	$	99,929	$	466,892	$	371,653
Denominator:
Weighted average common shares for basic net income per share	151,352		150,123		150,731		149,708
Dilutive effect of common share equivalents from equity-based compensation	4,621		4,477		4,343		4,151
Weighted average common shares for diluted net income per share	155,973		154,600		155,074		153,859
Net income per share:
Basic	$	1.67	$	0.67	$	3.10	$	2.48
Diluted	$	1.62	$	0.65	$	3.01	$	2.42
Anti-dilutive employee stock-based awards excluded⁽¹⁾	3		152		610		798

⁽¹⁾

These stock options and unvested restricted stock units were anti-dilutive for the respective periods and are excluded in calculating diluted net income per share. While such awards were anti-dilutive for the respective periods, they could be dilutive in the future.