Earnings Per Share

9 Months Ended

Aug. 31, 2023

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


	Three Months Ended August 31,				Nine Months Ended August 31,
	2023		2022		2023		2022
Numerator:
Net income	$	149,933	$	255,329	$	439,875	$	600,256
Less: Distributed earnings allocated to nonvested restricted stock	(120)		(62)		(295)		(190)
Less: Undistributed earnings allocated to nonvested restricted stock	(998)		(1,150)		(2,851)		(2,685)
Numerator for basic earnings per share	148,815		254,117		436,729		597,381
Effect of dilutive securities:

Add: Undistributed earnings allocated to nonvested restricted stock	998		1,150		2,851		2,685
Less: Undistributed earnings reallocated to nonvested restricted stock	(967)		(1,119)		(2,766)		(2,610)
Numerator for diluted earnings per share	$	148,846	$	254,148	$	436,814	$	597,456


	Three Months Ended August 31,				Nine Months Ended August 31,
	2023		2022		2023		2022
Denominator:
Weighted average shares outstanding — basic	80,175		86,487		81,790		87,538
Effect of dilutive securities:
Share-based payments	2,557		2,370		2,542		2,537
Weighted average shares outstanding — diluted	82,732		88,857		84,332		90,075
Basic earnings per share	$	1.86	$	2.94	$	5.34	$	6.82
Diluted earnings per share	$	1.80	$	2.86	$	5.18	$	6.63

We compute earnings per share using the two-class method, which is an allocation of earnings 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 August 31, 2023 or 2022.

For the three-month and nine-month periods ended August 31, 2023 and 2022, no outstanding stock options were excluded from the diluted earnings per share calculations. Contingently issuable shares associated with outstanding performance-based restricted stock units (each, a “PSU”) were not included in the basic earnings per share calculations for the periods presented, as the applicable vesting conditions had not been satisfied.