Stockholders' Equity and Earnings per Share

6 Months Ended

Mar. 31, 2020

Stockholders' Equity and Earnings per Share

Stockholders’ Equity and Earnings per Share

In January 2020, the Company's board of directors increased the quarterly cash dividend by 5% from $0.40 per share to $0.42 per share.

In October 2018, the Company's board of directors authorized a share repurchase program allowing the Company to purchase up to $1.0 billion of its outstanding shares of common stock, subject to market conditions. During the six months ended March 31, 2020, the Company purchased 4.8 million shares of its common stock for a total of $392.3 million, which excluded $14.8 million of September 2019 purchases that cash settled in October 2019. As of March 31, 2020, the Company had $68.8 million of availability remaining under this program.

In May 2020, the Company's board of directors authorized a new share repurchase program allowing the Company to purchase up to $500 million of its outstanding shares of common stock, subject to market conditions.

Basic earnings per share is computed by dividing net income attributable to AmerisourceBergen Corporation by the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per share is computed by dividing net income attributable to AmerisourceBergen Corporation by the weighted average number of shares of common stock outstanding, plus the dilutive effect of stock options and restricted stock units during the periods presented.

The following illustrates the components of diluted weighted average shares outstanding for the periods indicated:



	Three months ended March 31,		Six months ended March 31,
(in thousands)	2020	2019	2020	2019
Weighted average common shares outstanding - basic	205,370	210,934	205,693	211,503
Dilutive effect of stock options and restricted stock units	1,692	1,629	1,600	1,772
Weighted average common shares outstanding - diluted	207,062	212,563	207,293	213,275

The potentially dilutive stock options and restricted stock units that were antidilutive for the three and six months ended March 31, 2020 were 4.1 million and 4.2 million, respectively. The potentially dilutive stock options and restricted stock units that were antidilutive for the three and six months ended March 31, 2019 were 5.4 million and 4.6 million, respectively.