Stock Repurchases, Dividends and Earnings per Share

6 Months Ended

Jun. 30, 2019

Stock Repurchases, Dividends and Earnings per Share

STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE

Available Shares

We currently have approximately 12.8 million shares of common stock reserved for future grants under the Republic Services, Inc. Amended and Restated 2007 Stock Incentive Plan.

Stock Repurchases

Stock repurchase activity during the three and six months ended June 30, 2019 and 2018 follows (in millions, except per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2019		2018		2019		2018
Number of shares repurchased	1.1		3.3		2.6		7.1
Amount paid	$	91.0	$	219.5	$	202.5	$	474.0
Weighted average cost per share	$	82.63	$	67.47	$	78.11	$	67.05

As of June 30, 2019 and 2018, there were less than 0.1 million and 0.2 million repurchased shares pending settlement, respectively. As of June 30, 2019 and 2018, $0.9 million and $10.3 million of share repurchases were unpaid and included within other accrued liabilities, respectively.

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 June 30, 2019, the remaining authorized purchase capacity under our October 2017 repurchase program was $901.6 million.

Dividends

In April 2019, our Board of Directors approved a quarterly dividend of $0.375 per share. Cash dividends declared were $240.9 million for the six months ended June 30, 2019. As of June 30, 2019, we recorded a quarterly dividend payable of $120.2 million to shareholders of record at the close of business on July 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 and PSUs) 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 and six months ended June 30, 2019 and 2018 are calculated as follows (in thousands, except per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2019		2018		2019		2018
Basic earnings per share:
Net income attributable to Republic Services, Inc.	$	251,500	$	234,900	$	485,700	$	472,600
Weighted average common shares outstanding	321,718		327,365		322,000		329,003
Basic earnings per share	$	0.78	$	0.72	$	1.51	$	1.44
Diluted earnings per share:
Net income attributable to Republic Services, Inc.	$	251,500	$	234,900	$	485,700	$	472,600
Weighted average common shares outstanding	321,718		327,365		322,000		329,003
Effect of dilutive securities:
Options to purchase common stock	432		810		469		858
Unvested RSU awards	240		202		234		231
Unvested PSU awards	375		453		406		421
Weighted average common and common equivalent shares outstanding	322,765		328,830		323,109		330,513
Diluted earnings per share	$	0.78	$	0.71	$	1.50	$	1.43

There were no antidilutive securities during the three and six months ended June 30, 2019 and 2018.