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 June 30,					Six months ended June 30,
	2025		2024			2025		2024
Basic and Diluted:
Net income attributable to UHS	$	353,218	$	289,152		$	669,898	$	550,986
Less: Net income attributable to unvested restricted share grants		-		(5	)		-		(50	)
Net income attributable to UHS – basic and diluted	$	353,218	$	289,147		$	669,898	$	550,936

Weighted average number of common shares - basic		64,356		66,878			64,663		67,041
Net effect of dilutive stock options and grants based on the treasury stock method		635		1,042			851		1,160
Weighted average number of common shares and equivalents - diluted		64,991		67,920			65,514		68,201
Earnings per basic share attributable to UHS:	$	5.49	$	4.32		$	10.36	$	8.22
Earnings per diluted share attributable to UHS:	$	5.43	$	4.26		$	10.23	$	8.08

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 both the three and six-months ended June 30, 2025. The excluded weighted-average stock options totaled 1.1 million for the three-months ended June 30, 2024 and 1.2 million for the six-months ended June 30, 2024. All classes of our common stock have the same dividend rights.

During the three-month periods ended June 30, 2025 and 2024, pre-tax compensation costs of $8.1 million and $13.3 million, respectively, was recognized related to outstanding stock options. During the six-month periods ended June 30, 2025 and 2024, pre-tax compensation costs of $17.5 million and $27.7 million, respectively, was recognized related to outstanding stock options. In addition, during the three-month periods ended June 30, 2025 and 2024, pre-tax compensation costs of approximately $15.5 million and $12.8 million, respectively, was recognized related to restricted stock awards, restricted stock units and performance based restricted stock units. During the six-month periods ended June 30, 2025 and 2024, pre-tax compensation costs of $27.3 million and $17.9 million, respectively, was recognized related to restricted stock awards, restricted stock units and performance based restricted stock units. As of June 30, 2025 there was approximately $202.6 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 2.7 years. There were an aggregate of 560,044 restricted units, net of cancellations, granted during the first six 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 $178.19 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 $45.7 million and $46.2 million during the six-month periods ended June 30, 2025 and 2024, respectively.