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 216,000 for the three months ended September 30, 2026 and 184,000 for the three months ended September 30, 2025, and 206,000 for the nine months ended September 30, 2026 and 184,000 for the nine months ended September 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						Nine Months Ended
	September 30,						September 30,
	2026			2025			2026			2025
Net income	$	123,042		$	127,013		$	364,361		$	374,816
Amounts allocated to participating securities		(735	)		(626	)		(2,099	)		(1,847	)
Net income attributable to common stockholders	$	122,307		$	126,387		$	362,262		$	372,969

Weighted average common shares outstanding:
Basic		35,881			37,090			36,108			37,272
Effect of dilutive securities:
Stock options, restricted stock units and employee stock purchase plan		42			133			55			148
Diluted		35,923			37,223			36,163			37,420

Earnings per share attributable to common stockholders:
Basic	$	3.41		$	3.41		$	10.03		$	10.01
Diluted	$	3.40		$	3.40		$	10.02		$	9.97

Anti-dilutive stock options excluded from diluted earnings per share computations (1)		247			188			247			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.