Earnings Per Share

9 Months Ended

Jun. 30, 2019

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 7, when the impact is dilutive. Basic and diluted earnings per share for the three and nine months ended June 30, 2019 and 2018 are calculated as follows:



	Three Months Ended June 30				Nine Months Ended June 30
	2019		2018		2019		2018
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	80,466	$	71,193	$	453,000	$	564,317
Less: Income allocated to participating securities	64		59		386		545
Income available to common shareholders	$	80,402	$	71,134	$	452,614	$	563,772
Basic weighted average shares outstanding	118,075		111,851		116,485		110,707
Net income per share — Basic	$	0.68	$	0.64	$	3.89	$	5.09
Diluted Earnings Per Share
Income available to common shareholders	$	80,402	$	71,134	$	452,614	$	563,772
Effect of dilutive shares	—		—		—		—
Income available to common shareholders	$	80,402	$	71,134	$	452,614	$	563,772
Basic weighted average shares outstanding	118,075		111,851		116,485		110,707
Dilutive shares	355		—		188		—
Diluted weighted average shares outstanding	118,430		111,851		116,673		110,707
Net income per share - Diluted	$	0.68	$	0.64	$	3.88	$	5.09