Earnings Per Share

9 Months Ended

Aug. 31, 2025

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


	Three Months Ended August 31,				Nine Months Ended August 31,
	2025		2024		2025		2024
Numerator:
Net income	$	109,828	$	157,329	$	327,268	$	464,413
Less: Distributed earnings allocated to participating securities	(113)		(143)		(339)		(406)
Less: Undistributed earnings allocated to participating securities	(633)		(1,062)		(1,779)		(3,137)
Numerator for basic earnings per share	109,082		156,124		325,150		460,870
Effect of dilutive securities:

Add: Undistributed earnings allocated to participating securities	633		1,062		1,779		3,137
Less: Undistributed earnings reallocated to participating securities	(620)		(1,032)		(1,745)		(3,047)
Numerator for diluted earnings per share	$	109,095	$	156,154	$	325,184	$	460,960



Denominator:
Weighted average shares outstanding — basic	66,368		74,476		69,279		75,339
Effect of dilutive securities:
Share-based payments	1,369		2,154		1,364		2,226
Weighted average shares outstanding — diluted	67,737		76,630		70,643		77,565
Basic earnings per share	$	1.64	$	2.10	$	4.69	$	6.12
Diluted earnings per share	$	1.61	$	2.04	$	4.60	$	5.94

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 August 31, 2025 and 2024.

For the three-month and nine-month periods ended August 31, 2025 and 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.