Net Earnings Per Share

3 Months Ended

Mar. 31, 2020

Net Earnings Per Share

Net Earnings Per Share

Note 7.  Earnings Per Share

Basic net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. 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 March 31, 2020, the Company did not have any Class B Non-Voting common stock outstanding.

Diluted net 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 months ended March 31, 2020, 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 990,100 and 940,470 shares related to restricted stock units for which the performance metric had yet to be achieved as of March 31, 2020 and 2019, respectively.

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

	Three Months Ended March 31,
	2020		2019
Basic earnings per share:
Numerator
Net income	$	137,151	$	138,094
Preferred stock dividends		(3,844)		—
Net income available to common stockholders	$	133,307	$	138,094
Denominator
Weighted-average common shares outstanding		113,471,945		111,018,279
Basic earnings per share	$	1.17	$	1.24
Diluted earnings per share:
Numerator
Net income	$	137,151	$	138,094
Preferred stock dividends		(3,844)		—
Net income available to common stockholders	$	133,307	$	138,094
Denominator
Number of shares used in basic computation		113,471,945		111,018,279
Weighted-average effect of dilutive securities		313,083		1,362,577
Number of shares used in per share computation		113,785,028		112,380,856
Diluted earnings per share	$	1.17	$	1.23