Earnings Per Share

3 Months Ended

Nov. 30, 2023

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised, all unvested share-based payment awards were vested, and other distributions related to deferred stock agreements were incurred. Common stock equivalents are calculated using the treasury stock method. The dilutive effects of share-based payment awards subject to market and/or performance conditions that were not met during the period are excluded from the computation of diluted earnings per share.

The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data):


	Three Months Ended
	November 30, 2023		November 30, 2022
Net income	$	100.6	$	74.9
Basic weighted average shares outstanding	31.005		32.308
Common stock equivalents	0.360		0.396
Diluted weighted average shares outstanding	31.365		32.704
Basic earnings per share(1)	$	3.25	$	2.32
Diluted earnings per share(1)	$	3.21	$	2.29

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(1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

The following table presents stock options, performance stock awards, and restricted stock awards that were excluded from the diluted earnings per share calculation for the periods presented as the effect of inclusion would have been antidilutive (in millions):


	Three Months Ended
	November 30, 2023		November 30, 2022
Stock options	0.1		0.1
Performance stock awards	—	*	—	*
Restricted stock awards	0.2		0.1

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* Represents shares of less than 0.1 million.

Further discussion of our share-based payment awards is included within the Common Stock and Related Matters and Share-based Payments footnotes of the Notes to Consolidated Financial Statements within our Form 10-K.