Stock Repurchases, Dividends and Earnings per Share

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Stock Repurchases, Dividends and Earnings per Share

STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE

Available Shares

In March 2013, our Board of Directors approved the Republic Services, Inc. Amended and Restated 2007 Stock Incentive Plan (the Plan), and in May 2013 our shareholders ratified the Plan. We currently have approximately 12.8 million shares of common stock reserved for future grants under the Plan.

Stock Repurchases

Stock repurchase activity during the three months ended March 31, 2019 and March 31, 2018 follows (in millions, except per share amounts):

	Three Months Ended March 31,
	2019		2018
Number of shares repurchased	1.5		3.8
Amount paid	$	111.5	$	254.5
Weighted average cost per share	$	74.76	$	66.69

As of March 31, 2019, there were no repurchased shares pending settlement. As of March 31, 2018, 0.2 million repurchased shares were pending settlement, resulting in an associated $14.9 million of share repurchases unpaid and included within other accrued liabilities.

In October 2017, our Board of Directors added $2.0 billion to the existing share repurchase authorization that now extends through December 31, 2020. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The share repurchase program may be extended, suspended or discontinued at any time. As of March 31, 2019, the remaining authorized purchase capacity under our October 2017 repurchase program was $992.6 million.

Dividends

In February 2019, our Board of Directors approved a quarterly dividend of $0.375 per share. Cash dividends declared were $120.7 million for the three months ended March 31, 2019. As of March 31, 2019, we recorded a quarterly dividend payable of $120.7 million to shareholders of record at the close of business on April 1, 2019.

Earnings per Share

Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued RSUs) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the assumed exercise of employee stock options, unvested RSUs and unvested PSUs at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share.

Earnings per share for the three months ended March 31, 2019 and 2018 are calculated as follows (in thousands, except per share amounts):

	Three Months Ended March 31,
	2019		2018
Basic earnings per share:
Net income attributable to Republic Services, Inc.	$	234,200	$	237,700
Weighted average common shares outstanding	322,282		330,655
Basic earnings per share	$	0.73	$	0.72
Diluted earnings per share:
Net income attributable to Republic Services, Inc.	$	234,200	$	237,700
Weighted average common shares outstanding	322,282		330,655
Effect of dilutive securities:
Options to purchase common stock	504		904
Unvested RSU awards	227		260
Unvested PSU awards	437		389
Weighted average common and common equivalent shares outstanding	323,450		332,208
Diluted earnings per share	$	0.72	$	0.72

There were no antidilutive securities during the three months ended March 31, 2019 and 2018.