Computation of Earnings Per Share

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Numerator:
Net income used for calculating basic and diluted income per share	$	173,545	$	148,865	$	550,985	$	584,201
Denominator:
Weighted average common shares used in the calculation of basic income per share	79,259		83,566		80,516		85,877
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)	800		1,200		857		1,048
Shares used in the calculation of diluted income per share	80,059		84,766		81,373		86,925
Basic income per share	$	2.19	$	1.78	$	6.84	$	6.80
Diluted income per share	$	2.17	$	1.76	$	6.77	$	6.72

(1)Certain outstanding awards associated with stock-based compensation plans were not included in the computation of diluted income per share because the effect would have been anti-dilutive. These anti-dilutive outstanding awards associated with stock-based compensation plans totaled approximately 0.1 million for both of the three and nine months ended September 30, 2022. For both of the three and nine months ended September 30, 2021, the number of anti-dilutive shares was de minimis.