Computation of Earnings Per Share

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Numerator:
Net income used for calculating basic and diluted income per share	$	148,865	$	16,964	$	584,201	$	147,138
Denominator:
Weighted average common shares used in the calculation of basic income per share	83,566		89,378		85,877		89,307
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)	1,200		577		1,048		695
Shares used in the calculation of diluted income per share	84,766		89,955		86,925		90,002
Basic income per share	$	1.78	$	0.19	$	6.80	$	1.65
Diluted income per share	$	1.76	$	0.19	$	6.72	$	1.63

(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 nine months ended September 30, 2020, approximately 0.5 million and 0.8 million shares of common stock equivalents, respectively, were excluded from the calculation of diluted income per share because they were anti-dilutive. For both of the three and nine months ended September 30, 2021, the number of anti-dilutive shares was de minimis.