Earnings per share

9 Months Ended

Aug. 31, 2021

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				Nine Months Ended
	August 31, 2021		August 31, 2020		August 31, 2021		August 31, 2020
Net income	$	30,976	$	23,977	$	63,494	$	62,061
Weighted average shares outstanding	43,762		45,036		43,896		44,941
Dilutive impact from common stock equivalents	740		328		646		441
Diluted weighted average shares outstanding	44,502		45,364		44,542		45,382
Basic earnings per share	$	0.71	$	0.53	$	1.45	$	1.38
Diluted earnings per share	$	0.70	$	0.53	$	1.43	$	1.37

We excluded stock awards representing approximately 1,250,000 and 1,241,000 shares of common stock from the calculation of diluted earnings per share in the three and nine months ended August 31, 2021, respectively, because these awards were anti-dilutive. In the three and nine months ended August 31, 2020, we excluded stock awards representing 1,450,000 shares and 1,216,000 shares of common stock, respectively, from the calculation of diluted earnings per share as they were anti-dilutive.

In connection with the issuance of the Notes, we entered into Capped Calls (Note 7), which were not included for the purpose of calculating the number of diluted shares outstanding, as their effect would have been antidilutive.