Earnings Per Share

3 Months Ended

Feb. 28, 2025

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


	Three Months Ended
	February 28, 2025		February 29, 2024
Numerator:
Net income	$	109,557	$	138,665
Less: Distributed earnings allocated to participating securities	(113)		(117)
Less: Undistributed earnings allocated to participating securities	(567)		(937)
Numerator for basic earnings per share	108,877		137,611
Effect of dilutive securities:

Add: Undistributed earnings allocated to participating securities	567		937
Less: Undistributed earnings reallocated to participating securities	(555)		(909)
Numerator for diluted earnings per share	$	108,889	$	137,639



Denominator:
Weighted average shares outstanding — basic	71,537		75,894
Effect of dilutive securities:
Share-based payments	1,475		2,370
Weighted average shares outstanding — diluted	73,012		78,264
Basic earnings per share	$	1.52	$	1.81
Diluted earnings per share	$	1.49	$	1.76

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, 2025 and February 29, 2024.

For the three-month periods ended February 28, 2025 and February 29, 2024, 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.