Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share

Earnings Per Share

Note 21—Earnings Per Share

Basic earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding, assuming all dilutive securities were issued.

The Company’s potentially dilutive securities are stock-based compensation awards. The Company applies the treasury stock method to determine the diluted weighted average number of shares of common stock outstanding based on the outstanding stock-based compensation awards.

The following table summarizes the basic and diluted earnings per share calculations:

	Quarter ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	(in thousands, except per share amounts)
Net income	$	58,250	$	129,163	$	88,628	$	302,756
Weighted average shares of common stock outstanding		49,874		54,167		50,013		54,995
Effect of dilutive securities - shares issuable under stock-based compensation plan		2,390		2,475		2,790		2,897
Weighted average diluted shares of common stock outstanding		52,264		56,642		52,803		57,892
Basic earnings per share	$	1.17	$	2.38	$	1.77	$	5.51
Diluted earnings per share	$	1.11	$	2.28	$	1.68	$	5.23

Calculations of diluted earnings per share require certain potentially dilutive shares to be excluded when their inclusion in the diluted earnings per share calculation would be anti-dilutive. The following table summarizes the weighted-average number of anti-dilutive outstanding RSUs and stock options excluded from the calculation of diluted earnings per share:

	Quarter ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
	(in thousands except for weighted average exercise price)
Performance-based RSUs (1)		608		508		520		412
Time-based RSUs		1		144		129		233
Stock options (2)		470		1,424		410		1,256
Total anti-dilutive units and options		1,079		2,076		1,059		1,901
Weighted average exercise price of anti-dilutive stock options (2)	$	58.92	$	58.49	$	58.62	$	58.68

(1) Certain performance-based RSUs were outstanding but not included in the computation of earnings per share because the performance thresholds included in such RSUs have not been achieved.

(2) Certain stock options were outstanding but not included in the computation of diluted earnings per share because the weighted-average exercise prices were above the average stock prices for the period.