Net Earnings Per Share

6 Months Ended

Jun. 30, 2019

Net Earnings Per Share

Net Earnings Per Share

Note 6.  Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Preferred stock dividends are subtracted from net income in determining net income available to common stockholders. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B Non-Voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of June 30, 2019, we did not have any Class B Non-Voting common stock outstanding.

Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. For the three and six months ended June 30, 2019, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 976,613 and 951,878 shares related to restricted stock units for which the performance metric had yet to be achieved as of June 30, 2019 and 2018, respectively.

The following table sets forth the reconciliation of basic and diluted earnings per share (in thousands, except share and per share amounts):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Basic earnings per share:
Numerator
Net income	$	128,305	$	115,211	$	266,399	$	225,862
Preferred stock dividends		(4,271)		—		(4,271)		—
Net income available to common stockholders	$	124,034	$	115,211	$	262,128	$	225,862
Denominator
Weighted-average common shares outstanding		111,371,790		104,003,960		111,196,011		103,876,647
Basic earnings per share	$	1.11	$	1.11	$	2.36	$	2.17
Diluted earnings per share:
Numerator
Net income	$	128,305	$	115,211	$	266,399	$	225,862
Preferred stock dividends		(4,271)		—		(4,271)		—
Assumed conversion of convertible senior notes		—		1,735		—		3,474
Net income available to common stockholders plus assumed conversions	$	124,034	$	116,946	$	262,128	$	229,336
Denominator
Number of shares used in basic computation		111,371,790		104,003,960		111,196,011		103,876,647
Weighted-average effect of dilutive securities		1,435,233		8,420,622		1,402,612		8,449,859
Number of shares used in per share computation		112,807,023		112,424,582		112,598,623		112,326,506
Diluted earnings per share	$	1.10	$	1.04	$	2.33	$	2.04