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Earnings Per Share
 9 Months Ended
Aug. 31, 2017
Earnings Per Share, Basic and Diluted [Abstract]  
Earnings Per Share
Earnings Per Share
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,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income
$
50,208

 
$
39,363

 
$
96,249

 
$
68,087

Less: Distributed earnings allocated to nonvested restricted stock
(14
)
 
(10
)
 
(43
)
 
(31
)
Less: Undistributed earnings allocated to nonvested restricted stock
(307
)
 
(180
)
 
(602
)
 
(296
)
Numerator for basic earnings per share
49,887

 
39,173

 
95,604

 
67,760

 
Three Months Ended August 31,
 
Nine Months Ended August 31,
 
2017
 
2016
 
2017
 
2016
Effect of dilutive securities:
 
 
 
 
 
 
 
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes
664

 
667

 
1,990

 
2,000

Add: Undistributed earnings allocated to nonvested restricted stock
307

 
180

 
602

 
296

Less: Undistributed earnings reallocated to nonvested restricted stock
(267
)
 
(161
)
 
(528
)
 
(264
)
Numerator for diluted earnings per share
$
50,591

 
$
39,859

 
$
97,668

 
$
69,792

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average shares outstanding — basic
85,974

 
84,457

 
85,517

 
85,952

Effect of dilutive securities:
 
 
 
 
 
 
 
Share-based payments
4,536

 
2,344

 
3,705

 
2,083

Convertible senior notes
8,402

 
8,402

 
8,402

 
8,402

Weighted average shares outstanding — diluted
98,912

 
95,203

 
97,624

 
96,437

Basic earnings per share
$
.58

 
$
.46

 
$
1.12

 
$
.79

Diluted earnings per share
$
.51

 
$
.42

 
$
1.00

 
$
.72


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, 2017 or August 31, 2016.
Outstanding options to purchase 2.5 million shares of our common stock were excluded from the diluted earnings per share calculations for the three-month and nine-month periods ended August 31, 2017, and outstanding options to purchase 6.6 million shares of our common stock were excluded from the diluted earnings per share calculations for the three-month and nine-month periods ended August 31, 2016 because the effect of their inclusion in each case would be antidilutive. 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.