We calculate basic and diluted earnings per share using the two-class method. Earnings per share under the two-class method is calculated using net income attributable to common stockholders, which is net income reduced by the earnings allocated to participating securities. Our participating securities include share-based awards that contain a non-forfeitable right to receive dividends and are considered to participate in undistributed earnings with common shareholders. Participating securities excluded from weighted average common shares outstanding were 215,000 for the three months ended June 30, 2026 and 186,000 for the three months ended June 30, 2025, and 200,000 for the six months ended June 30, 2026 and 185,000 for the six months ended June 30, 2025.

The table below presents the computation of earnings per share, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except per share data):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Net income	$	188,089		$	194,258		$	241,319		$	247,803
Amounts allocated to participating securities		(1,118	)		(963	)		(1,365	)		(1,220	)
Net income attributable to common stockholders	$	186,971		$	193,295		$	239,954		$	246,583

Weighted average common shares outstanding:
Basic		36,085			37,271			36,223			37,365
Effect of dilutive securities:
Stock options, restricted stock units and employee stock purchase plan		47			136			57			155
Diluted		36,132			37,407			36,280			37,520

Earnings per share attributable to common stockholders:
Basic	$	5.18		$	5.19		$	6.62		$	6.60
Diluted	$	5.17		$	5.17		$	6.61		$	6.57

Anti-dilutive stock options excluded from diluted earnings per share computations (1)		246			190			246			190

(1)

Since these options have exercise prices that are higher than the average market prices of our common stock, including them in the calculation would have an anti-dilutive effect on earnings per share.