Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.6
Earnings Per Share
 3 Months Ended
Nov. 30, 2012
Earnings Per Share

Note 8. Earnings Per Share

The reconciliations between basic and diluted earnings per share are as follows (in thousands, except per share amounts):

 

     Three Months Ended
November 30,		  
     2012      2011  

Numerator:

      

Net earnings from continuing operations

    $ 36,343       $ 37,174   

Plus: 2% Convertible Notes financing costs, net of taxes

      —           511   
  

 

 

     

 

 

  

Net earnings for diluted earnings per share

    $ 36,343       $ 37,685   
  

 

 

     

 

 

  

Denominator:

      

Weighted average common shares outstanding for basic earnings per share

      72,791         68,421   

Net effect of dilutive securities—equity based compensation plans

      1,480         764   

Net effect of 2% Convertible Notes based on the if-converted method

      —           5,957   
  

 

 

     

 

 

  

Weighted average common and equivalent shares outstanding for diluted earnings per share

      74,271         75,142   
  

 

 

     

 

 

  

Basic Earnings Per Share:

    $ 0.50       $ 0.54   

Diluted Earnings Per Share:

    $ 0.49       $ 0.50   

At November 30, 2012 and 2011, outstanding share based awards to acquire 789,000 and 3,856,000 shares of common stock were not included in the Company’s computation of earnings per share because the effect would have been anti-dilutive.

As discussed in Note 6, “Debt” the Company issued 5,951,440 shares of common stock in the third quarter of fiscal 2012, in conjunction with the conversion of its 2% Convertible Notes, resulting in an increase in the weighted average common shares outstanding for basic earnings per share. However, the impact of the additional share issuance was already included in the diluted earnings per share calculation, on an if-converted method. The Company has also repurchased common shares on the open market in the last year, as well as issued new shares pursuant to equity compensation plans.