Earnings Per Share Data and Stock Based Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Earnings Per Share Data and Stock Based Compensation

(8) Earnings Per Share Data and Stock Based Compensation

Basic earnings per share are based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are based on the weighted average number of common shares outstanding during the period adjusted to give effect to common stock equivalents.

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

	Three months ended March 31,
	2025		2024
Basic and Diluted:
Net income attributable to UHS	$	316,680	$	261,834
Less: Net income attributable to unvested restricted share    grants		-		(45	)
Net income attributable to UHS – basic and diluted	$	316,680	$	261,789
Weighted average number of common shares - basic		64,970		67,204
Net effect of dilutive stock options and grants based on the    treasury stock method		1,067		1,278
Weighted average number of common shares and    equivalents - diluted		66,037		68,482
Earnings per basic share attributable to UHS:	$	4.87	$	3.90
Earnings per diluted share attributable to UHS:	$	4.80	$	3.82

The “Net effect of dilutive stock options and grants based on the treasury stock method”, for all periods presented above, excludes certain outstanding stock options applicable to each period since the effect would have been anti-dilutive. The excluded weighted-average stock options totaled 7,500 for the three months ended March 31, 2025 and 1.3 million for the three months ended March 31, 2024. All classes of our common stock have the same dividend rights.

Stock-Based Compensation:

During the three-month periods ended March 31, 2025 and 2024, pre-tax compensation costs of $9.4 million and $14.4 million, respectively, was recognized related to outstanding stock options. In addition, during the three-month periods ended March 31, 2025 and 2024, pre-tax compensation cost of approximately $11.8 million and $5.1 million, respectively, was recognized related to restricted stock awards, restricted stock units and performance based restricted stock units. As of March 31, 2025 there was approximately $228.5 million of unrecognized compensation cost related to unvested options, restricted stock awards, restricted stock units and performance based restricted stock units which is expected to be recognized over the remaining weighted average vesting period of 2.9 years. There were an aggregate of 558,939 restricted units, net of cancellations, granted during the first three months of 2025 under the 2020 Stock Incentive Plan, including 61,251 performance based restricted stock units, with a weighted-average grant date fair value of $178.08 per share.

The expense associated with stock-based compensation arrangements is a non-cash charge. In the condensed consolidated statements of cash flows, stock-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities and aggregated to $21.6 million and $19.6 million during the three-month periods ended March 31, 2025 and 2024, respectively.