Earnings per Share

9 Months Ended

Sep. 30, 2020

Earnings per ShareBasic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding. For purposes of calculating basic EPS, vested restricted stock and restricted stock units (“RSUs”) are considered outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. The determination of whether components are dilutive is calculated independently for each period. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if unvested RSUs result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures result in the issuance of common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive.

Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS.


Earnings per share
Table	6.1
		Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share data)		2020		2019		2020		2019
Basic earnings per share:
Net income		$	130,811	$	176,934	$	294,663	$	496,653
Weighted average common shares outstanding - basic		338,598		351,475		340,408		354,272
Basic earnings per share		$	0.39	$	0.50	$	0.87	$	1.40

Diluted earnings per share:
Net income		$	130,811	$	176,934	$	294,663	$	496,653
Interest expense, net of tax:
9% Debentures		4,161		4,566		13,293		13,698
Diluted income available to common shareholders		$	134,972	$	181,500	$	307,956	$	510,351

Weighted average common shares outstanding - basic		338,598		351,475		340,408		354,272
Effect of dilutive securities:
Unvested RSUs		1,377		2,072		1,492		1,966
9% Debentures		17,220		19,028		18,489		19,028
Weighted average common shares outstanding - diluted		357,195		372,575		360,389		375,266
Diluted earnings per share		$	0.38	$	0.49	$	0.85	$	1.36