Earnings Per Share (Notes)

3 Months Ended

Mar. 31, 2024

Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares consist of: i) employee stock purchase plan shares; ii) contingently issuable time-based and performance-based restricted stock units, along with associated dividend equivalent rights; and iii) shares issuable pursuant to the at the market offering program. Unvested performance-based restricted stock units and associated dividend equivalent rights are included in dilutive potential common shares only after the performance criteria have been met.

For the three months ended March 31, 2024, unvested performance-based restricted stock units and related dividend equivalent rights of 507 thousand shares were excluded from the dilutive calculation because the performance goals had not been met, with 413 thousand shares excluded for the three months ended March 31, 2023.

Net income is the same for both the basic and diluted earnings per share computations. The denominators of the basic and diluted earnings per share computations are as follows (in thousands):


	Three Months Ended March 31,
		2024	2023
Weighted-average common shares outstanding—basic		101,299	91,840
Dilutive effect of potential common shares *		168	731
Weighted-average common shares outstanding—diluted		101,467	92,571

* As of March 31, 2023, 577,479 incremental shares were included in the calculation of diluted EPS related to the securities under the EFSA. There was no dilutive impact from the EFSA in 2024 as it was settled in July 2023.