Earnings per Share

3 Months Ended

May 31, 2014

Note 4 – Earnings per Share

We compute basic earnings per share using the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share using the weighted average number of shares of common stock outstanding plus the effect of dilutive securities. For the fiscal quarter ended May 31, 2014, our dilutive securities consisted of outstanding options to purchase common stock and the impact of a $15 million severance payment to our former Chief Executive Officer (“CEO”) to be settled with common stock on September 1, 2014. For the fiscal quarter ended May 31, 2013, our dilutive securities consisted of outstanding options to purchase common stock and issued and contingently issuable unvested restricted share units and awards. Options for common stock are excluded from the computation of diluted earnings per share if their effect is antidilutive. See Note 14 to these consolidated condensed financial statements for more information regarding restricted share units and awards. For the periods covered below, the basic and diluted shares are as follows:

WEIGHTED AVERAGE DILUTED SECURITIES

(in thousands)

	Three months ended May 31,
	2014	2013

Weighted average shares outstanding, basic	29,105	31,908
Incremental shares from share-based payment arrangements	511	272
Weighted average shares outstanding, diluted	29,616	32,180

Dilutive securities, as a result of in-the-money options	728	199
Dilutive securities, as a result of unvested or unsettled share awards due	231	234
Antidilutive securities, as a result of out-of-the-money options	233	797

- Definition

The entire disclosure for earnings per share.

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