Earnings Per Share

3 Months Ended

Feb. 28, 2022

Earnings Per Share, Basic and Diluted [Abstract]

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


	Three Months Ended February 28,
	2022		2021
Numerator:
Net income	$	134,257	$	97,051
Less: Distributed earnings allocated to nonvested restricted stock	(65)		(63)
Less: Undistributed earnings allocated to nonvested restricted stock	(584)		(381)
Numerator for basic earnings per share	133,608		96,607
Effect of dilutive securities:

Add: Undistributed earnings allocated to nonvested restricted stock	584		381
Less: Undistributed earnings reallocated to nonvested restricted stock	(566)		(368)
Numerator for diluted earnings per share	$	133,626	$	96,620



Denominator:
Weighted average shares outstanding — basic	88,285		91,716
Effect of dilutive securities:
Share-based payments	2,782		3,187
Weighted average shares outstanding — diluted	91,067		94,903
Basic earnings per share	$	1.51	$	1.05
Diluted earnings per share	$	1.47	$	1.02

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 February 28, 2022 or 2021.

For the three-month periods ended February 28, 2022 and 2021, 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.