Income Per Common Share

3 Months Ended

Mar. 31, 2024

Income Per Common Share

Income Per Common Share

Note 2 — Income Per Common Share

Basic income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted income per share is calculated by dividing net income available to common shareholders by the weighted average number of shares used to calculate basic income per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share if the performance targets have been achieved, or would have been achieved if the reporting date was the end of the contingency period. Finally, the Company includes the dilutive effect of shares issuable upon conversion of its Notes in the calculation of diluted income per share using the if-converted method. The Company has the option for the 2025 and 2027 Notes to settle the conversion value in any combination of cash or shares, and as such, the maximum number of shares issuable are included in the dilutive share count if the effect would be dilutive. The Company must settle the principal amount of the 2029 Notes in cash, and has the option to settle any excess of the conversion value over the principal amount in any combination of cash or shares. As such, the Company only includes the excess shares that may be issuable above the principal amount of the 2029 Notes in the dilutive share count, if the effect would be dilutive.

The computations of basic and diluted income per share for the three months ended March 31, 2024 and 2023 are as follows:

	Three months ended March 31,
	2024		2023
	(in thousands, except per share amounts)
Numerator:
Net income	$	21,854	$	8,741
Interest expense associated with convertible notes		514		1,277
Net income available to common shareholders	$	22,368	$	10,018
Denominator:
Basic weighted average shares outstanding		55,968		50,559
Effect of potentially dilutive share-based awards		939		355
Dilutive effect of convertible notes		3,857		8,942
Diluted weighted average shares outstanding		60,764		59,856
Net income per common share:
Basic	$	0.39	$	0.17
Diluted	$	0.37	$	0.17
Potentially dilutive shares excluded from the diluted calculation as their effect would be antidilutive		213		1,140
Potential shares to be issued for settlement of the convertible notes excluded from the diluted calculation as their effect would be antidilutive		—		5,603