Computation of Earnings Per Share

3 Months Ended

Mar. 31, 2022

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
	March 31,
	2022		2021
Numerator:
Net income used for calculating basic and diluted income per share	$	172,515	$	164,100
Denominator:
Weighted average common shares used in the calculation of basic income per share	82,020		88,352
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)	953		787
Shares used in the calculation of diluted income per share	82,973		89,139
Basic income per share	$	2.10	$	1.86
Diluted income per share	$	2.08	$	1.84

(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. These potential shares of common stock totaled approximately 0.2 million and 0.4 million for the three months ended March 31, 2022 and 2021, respectively.