Earnings Per Share

3 Months Ended

Dec. 31, 2020

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 to the unaudited condensed consolidated financial statements, when the impact is dilutive. Basic and diluted earnings per share for the three months ended December 31, 2020 and 2019 are calculated as follows:


	Three Months Ended December 31
	2020		2019
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	217,678	$	178,673
Less: Income allocated to participating securities	151		136
Income available to common shareholders	$	217,527	$	178,537
Basic weighted average shares outstanding	127,034		121,113
Net income per share — Basic	$	1.71	$	1.47
Diluted Earnings Per Share
Income available to common shareholders	$	217,527	$	178,537
Effect of dilutive shares	—		—
Income available to common shareholders	$	217,527	$	178,537
Basic weighted average shares outstanding	127,034		121,113
Dilutive shares	—		246
Diluted weighted average shares outstanding	127,034		121,359
Net income per share - Diluted	$	1.71	$	1.47