Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2022

Note 15. Earnings (Loss) Per Share

The Company calculates earnings (loss) per share using the two-class method. The two-class method allocates net income or loss to each class of common stock and participating security according to common dividends declared and participation rights in undistributed earnings. For reporting periods in which a net loss is recorded, net loss is not allocated to participating securities because the holders of such securities bear no contractual obligation to fund or otherwise share in the loss. Participating securities consist of nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents

A summary of the information used in the computation of earnings (loss) per common share follows.


	Years Ended December 31,
($ in thousands, except per share data)	2022		2021		2020
Numerator:
Net income (loss) to common shareholders	$	524,089	$	463,215	$	(45,174	)
Net income or dividends allocated to participating securities - basic and diluted		7,620		9,134		1,756
Net income (loss) allocated to common shareholders - basic and diluted	$	516,469	$	454,081	$	(46,930	)
Denominator:
Weighted-average common shares - basic		86,068		86,823		86,533
Dilutive potential common shares		326		204		—
Weighted average common shares - diluted		86,394		87,027		86,533
Earnings (loss) per common share:
Basic	$	6.00	$	5.23	$	(0.54	)
Diluted	$	5.98	$	5.22	$	(0.54	)

Potential common shares consist of stock options, nonvested performance-based awards, nonvested restricted stock units, and nonvested restricted share awards deferred under the Company’s nonqualified deferred compensation plan. These potential common shares do not enter into the calculation of diluted earnings per share if the impact would be antidilutive, i.e., increase earnings per share or reduce a loss per share. For reporting periods in which a net loss is reported, such as the year ended December 31, 2020, no effect is given to potentially dilutive common shares in the computation of loss per common share as any impact from such shares would be antidilutive. The weighted average of potentially dilutive common shares that were anti-dilutive totaled 3,116 for the year ended December 31, 2022 and 1,079 for the year ended December 31, 2021 and, as such were excluded from the calculation of diluted earnings per common diluted share for the respective periods.