Earnings Per Share

6 Months Ended

Mar. 31, 2023

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 and six months ended March 31, 2023 and 2022 are calculated as follows:


	Three Months Ended March 31				Six Months Ended March 31
	2023		2022		2023		2022
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	357,671	$	324,999	$	629,531	$	574,208
Less: Income allocated to participating securities	212		202		381		379
Income available to common shareholders	$	357,459	$	324,797	$	629,150	$	573,829
Basic weighted average shares outstanding	143,941		136,834		142,881		135,259
Net income per share — Basic	$	2.48	$	2.37	$	4.40	$	4.24
Diluted Earnings Per Share
Income available to common shareholders	$	357,459	$	324,797	$	629,150	$	573,829
Effect of dilutive shares	—		—		—		—
Income available to common shareholders	$	357,459	$	324,797	$	629,150	$	573,829
Basic weighted average shares outstanding	143,941		136,834		142,881		135,259
Dilutive shares	46		416		82		211
Diluted weighted average shares outstanding	143,987		137,250		142,963		135,470
Net income per share — Diluted	$	2.48	$	2.37	$	4.40	$	4.24