Earnings Per Share

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Additionally, the weighted-average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 7, when the impact is dilutive. Basic and diluted earnings per share for the three months ended December 31, 2018 and 2017 are calculated as follows:



	Three Months Ended December 31
	2018		2017
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	157,646	$	314,132
Less: Income allocated to participating securities	135		328
Income available to common shareholders	$	157,511	$	313,804
Basic weighted average shares outstanding	113,800		108,564
Net income per share — Basic	$	1.38	$	2.89
Diluted Earnings Per Share
Income available to common shareholders	$	157,511	$	313,804
Effect of dilutive shares	—		—
Income available to common shareholders	$	157,511	$	313,804
Basic weighted average shares outstanding	113,800		108,564
Dilutive shares ⁽¹⁾	32		—
Diluted weighted average shares outstanding	113,832		108,564
Net income per share - Diluted	$	1.38	$	2.89


(1)	Dilutive shares were the result of the forward sale agreements entered into during fiscal 2019. See Note 7 for further discussion.