Earnings (Loss) Per Share

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



	Three Months Ended February 28,
	2018			2017
Numerator:
Net income (loss)	$	(71,255	)	$	14,259
Less: Distributed earnings allocated to nonvested restricted stock	—			(15		)
Less: Undistributed earnings allocated to nonvested restricted stock	—			(85		)
Numerator for basic earnings (loss) per share	(71,255		)	14,159
Effect of dilutive securities:
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes	—			663
Add: Undistributed earnings allocated to nonvested restricted stock	—			85
Less: Undistributed earnings reallocated to nonvested restricted stock	—			(75		)
Numerator for diluted earnings (loss) per share	$	(71,255	)	$	14,832



	Three Months Ended February 28,
	2018			2017
Denominator:
Weighted average shares outstanding — basic	87,155			85,122
Effect of dilutive securities:
Share-based payments	—			2,749
Convertible senior notes	—			8,402
Weighted average shares outstanding — diluted	87,155			96,273
Basic earnings (loss) per share	$	(.82	)	$	.17
Diluted earnings (loss) per share	$	(.82	)	$	.15

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 February 28, 2018 or 2017.

For the three months ended February 28, 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 months ended February 28, 2017, outstanding stock options to purchase 5.1 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 per share calculations for the periods presented, as the applicable vesting conditions had not been satisfied.