Computation of Earnings Per Share

6 Months Ended

Jun. 30, 2021

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS reflects the potential dilution of securities that could share in earnings. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be anti-dilutive.

The table below sets forth the calculation of basic and diluted income per share for the periods indicated (in thousands, except per share data).


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Numerator:
Net income used for calculating basic and diluted income per share	$	271,236	$	55,077	$	435,336	$	130,174
Denominator:
Weighted average common shares used in the calculation of basic income per share	85,712		89,323		87,032		89,271
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)	877		457		889		696
Shares used in the calculation of diluted income per share	86,589		89,780		87,921		89,967
Basic income per share	$	3.16	$	0.62	$	5.00	$	1.46
Diluted income per share	$	3.13	$	0.61	$	4.95	$	1.45

(1)Certain potential shares of common stock were not included in the computation of diluted income per share because the effect would have been anti-dilutive. For the three and six months ended June 30, 2021, approximately 0.1 million shares of common stock equivalents were excluded for both periods from the calculation of diluted income per share because they were anti-dilutive. For the three and six months ended June 30, 2020, approximately 1.3 million and 0.8 million shares of common stock equivalents, respectively, were excluded because of their anti-dilutive effect.