Net Earnings Per Share

12 Months Ended

Dec. 31, 2021

Basic net earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net 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 December 31, 2021, we 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 years ended December 31, 2021, 2020, and 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 1,083,174, 1,032,305, and 945,565 shares related to restricted stock units for which the performance metric had yet to be achieved as of December 31, 2021, 2020, and 2019, respectively.

The following table sets forth the reconciliation of basic and diluted net earnings per share:


	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	(in thousands, except share and per share amounts)
Basic earnings per share:
Numerator
Net income	$	436,632	$	516,264	$	587,121
Preferred stock dividends	(28,473)		(15,375)		(11,958)
Net income available to common stockholders	$	408,159	$	500,889	$	575,163
Denominator
Weighted-average common shares outstanding	114,050,578		113,684,782		111,895,433
Basic earnings per share	$	3.58	$	4.41	$	5.14
Diluted earnings per share:
Numerator
Net income	$	436,632	$	516,264	$	587,121
Preferred stock dividends	(28,473)		(15,375)		(11,958)
Net income available to common stockholders	$	408,159	$	500,889	$	575,163
Denominator
Number of shares used in basic computation	114,050,578		113,684,782		111,895,433
Weighted-average effect of dilutive securities	395,515		329,239		1,190,890
Number of shares used in per share computation	114,446,093		114,014,021		113,086,323
Diluted earnings per share	$	3.57	$	4.39	$	5.09