EARNINGS PER SHARE

12 Months Ended

Sep. 30, 2022

8. EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating securities as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common stockholders.

Basic earnings per common share excludes dilution and is calculated by dividing the net earnings allocable to common stock by the weighted-average number of common stock outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common stock by the weighted-average number of shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:


	Fiscal Year Ended
(in thousands, except per share data)	September 30, 2022		September 30, 2021		September 30, 2020
Numerator:
Net income	$	913,434	$	587,857	$	152,302
Less: Undistributed earnings allocated to participating securities	14,460		11,380		3,356
Net income available to common shareholders	$	898,974	$	576,477	$	148,946

Denominator:
Basic weighted average common shares outstanding	43,717		46,569		47,265
Effect of dilutive securities: Non-participating employee stock options (1)	563		737		779
Diluted weighted average common shares outstanding	44,280		47,306		48,044

Basic earnings per share	$	20.56	$	12.38	$	3.15
Diluted earnings per share	$	20.30	$	12.19	$	3.10

(1) Stock options to purchase approximately 0.0 million, 0.0 million, and 0.3 million shares of common stock were outstanding during the years ended September 30, 2022, September 30, 2021, and September 30, 2020, respectively, but were not included in the calculation of diluted earnings per share as the impact of these would have been anti-dilutive.