Earnings Per Share

6 Months Ended

May 31, 2023

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


	Three Months Ended May 31,				Six Months Ended May 31,
	2023		2022		2023		2022
Numerator:
Net income	$	164,442	$	210,670	$	289,942	$	344,927
Less: Distributed earnings allocated to nonvested restricted stock	(91)		(64)		(176)		(129)
Less: Undistributed earnings allocated to nonvested restricted stock	(1,119)		(957)		(1,866)		(1,539)
Numerator for basic earnings per share	163,232		209,649		287,900		343,259
Effect of dilutive securities:

Add: Undistributed earnings allocated to nonvested restricted stock	1,119		957		1,866		1,539
Less: Undistributed earnings reallocated to nonvested restricted stock	(1,085)		(931)		(1,811)		(1,495)
Numerator for diluted earnings per share	$	163,266	$	209,675	$	287,955	$	343,303


	Three Months Ended May 31,				Six Months Ended May 31,
	2023		2022		2023		2022
Denominator:
Weighted average shares outstanding — basic	81,764		87,858		82,607		88,069
Effect of dilutive securities:
Share-based payments	2,542		2,458		2,534		2,621
Weighted average shares outstanding — diluted	84,306		90,316		85,141		90,690
Basic earnings per share	$	2.00	$	2.39	$	3.49	$	3.90
Diluted earnings per share	$	1.94	$	2.32	$	3.38	$	3.79

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 May 31, 2023 or 2022.

For the three-month and six-month periods ended May 31, 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.