Earnings Per Share

3 Months Ended

Feb. 28, 2023

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


	Three Months Ended February 28,
	2023		2022
Numerator:
Net income	$	125,500	$	134,257
Less: Distributed earnings allocated to nonvested restricted stock	(87)		(65)
Less: Undistributed earnings allocated to nonvested restricted stock	(777)		(584)
Numerator for basic earnings per share	124,636		133,608
Effect of dilutive securities:

Add: Undistributed earnings allocated to nonvested restricted stock	777		584
Less: Undistributed earnings reallocated to nonvested restricted stock	(754)		(566)
Numerator for diluted earnings per share	$	124,659	$	133,626


	Three Months Ended February 28,
	2023		2022
Denominator:
Weighted average shares outstanding — basic	83,468		88,285
Effect of dilutive securities:
Share-based payments	2,527		2,782
Weighted average shares outstanding — diluted	85,995		91,067
Basic earnings per share	$	1.49	$	1.51
Diluted earnings per share	$	1.45	$	1.47

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, 2023 or 2022.

For the three-month periods ended February 28, 2023 and 2022, 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.