Earnings (Loss) Per Share

Basic and diluted earnings (loss) per share were calculated as follows (in thousands, except per share amounts):



	Three Months Ended May 31,						Six Months Ended May 31,
	2018			2017			2018			2017
Numerator:
Net income (loss)	$	57,308		$	31,782		$	(13,947	)	$	46,041
Less: Distributed earnings allocated to nonvested restricted stock	(12		)	(14		)	—			(29		)
Less: Undistributed earnings allocated to nonvested restricted stock	(310		)	(200		)	—			(285		)
Numerator for basic earnings (loss) per share	56,986			31,568			(13,947		)	45,727
Effect of dilutive securities:
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes	796			664			—			1,327
Add: Undistributed earnings allocated to nonvested restricted stock	310			200			—			285
Less: Undistributed earnings reallocated to nonvested restricted stock	(269		)	(175		)	—			(251		)
Numerator for diluted earnings (loss) per share	$	57,823		$	32,257		$	(13,947	)	$	47,088

Denominator:
Weighted average shares outstanding — basic	87,581			85,445			87,370			85,285
Effect of dilutive securities:
Share-based payments	5,176			3,885			—			3,288
Convertible senior notes	8,402			8,402			—			8,402
Weighted average shares outstanding — diluted	101,159			97,732			87,370			96,975
Basic earnings (loss) per share	$	.65		$	.37		$	(.16	)	$	.54
Diluted earnings (loss) per share	$	.57		$	.33		$	(.16	)	$	.49

We compute earnings (loss) per share using the two-class method, which is an allocation of earnings (losses) between the holders of common stock and a company’s participating security holders. Our outstanding nonvested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at May 31, 2018 or 2017.

For the three-month period ended May 31, 2018, outstanding stock options to purchase 1.6 million shares of our common stock were excluded from the diluted earnings per share calculation because the effect of their inclusion would be antidilutive. For the six-month period ended May 31, 2018, all outstanding stock options, contingently issuable shares associated with outstanding performance-based restricted stock units (each, a “PSU”), and the impact of our 1.375% convertible senior notes due 2019 (“1.375% Convertible Senior Notes due 2019”), were excluded from the diluted loss per share calculation because the effect of their inclusion would be antidilutive. For the three-month and six-month periods ended May 31, 2017, outstanding stock options to purchase 3.6 million shares of our common stock were excluded from the diluted earnings per share calculation because the effect of their inclusion would be antidilutive. Contingently issuable shares associated with outstanding PSUs were not included in the basic earnings (loss) per share calculations for the periods presented, as the applicable vesting conditions had not been satisfied.