Earnings Per Share

6 Months Ended

May 31, 2024

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


	Three Months Ended May 31,				Six Months Ended May 31,
	2024		2023		2024		2023
Numerator:
Net income	$	168,419	$	164,442	$	307,084	$	289,942
Less: Distributed earnings allocated to participating securities	(145)		(91)		(262)		(176)
Less: Undistributed earnings allocated to participating securities	(1,136)		(1,119)		(2,072)		(1,866)
Numerator for basic earnings per share	167,138		163,232		304,750		287,900
Effect of dilutive securities:

Add: Undistributed earnings allocated to participating securities	1,136		1,119		2,072		1,866
Less: Undistributed earnings reallocated to participating securities	(1,105)		(1,085)		(2,013)		(1,811)
Numerator for diluted earnings per share	$	167,169	$	163,266	$	304,809	$	287,955



Denominator:
Weighted average shares outstanding — basic	75,653		81,764		75,773		82,607
Effect of dilutive securities:
Share-based payments	2,153		2,542		2,261		2,534
Weighted average shares outstanding — diluted	77,806		84,306		78,034		85,141
Basic earnings per share	$	2.21	$	2.00	$	4.02	$	3.49
Diluted earnings per share	$	2.15	$	1.94	$	3.91	$	3.38

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 during the three-month and six-month periods ended May 31, 2024 and 2023.

For the three-month and six-month periods ended May 31, 2024 and 2023, 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.