Net Earnings Per Share

9 Months Ended

Sep. 30, 2019

Net Earnings Per Share

Net Earnings Per Share

Note 7.  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 September 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 nine months ended September 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 946,406 and 950,761 shares related to restricted stock units for which the performance metric had yet to be achieved as of September 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				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Basic earnings per share:
Numerator
Net income	$	155,787	$	146,574	$	422,186	$	372,436
Preferred stock dividends		(3,844)		—		(8,115)		—
Net income available to common stockholders	$	151,943	$	146,574	$	414,071	$	372,436
Denominator
Weighted-average common shares outstanding		112,133,556		104,066,785		111,511,960		103,940,723
Basic earnings per share	$	1.36	$	1.41	$	3.71	$	3.58
Diluted earnings per share:
Numerator
Net income	$	155,787	$	146,574	$	422,186	$	372,436
Preferred stock dividends		(3,844)		—		(8,115)		—
Assumed conversion of convertible senior notes		—		1,823		—		5,309
Net income available to common stockholders plus assumed conversions	$	151,943	$	148,397	$	414,071	$	377,745
Denominator
Number of shares used in basic computation		112,133,556		104,066,785		111,511,960		103,940,723
Weighted-average effect of dilutive securities		1,129,840		8,442,827		1,325,566		8,437,147
Number of shares used in per share computation		113,263,396		112,509,612		112,837,526		112,377,870
Diluted earnings per share	$	1.34	$	1.32	$	3.67	$	3.36