Earnings per Share

12 Months Ended

Dec. 31, 2020


NOTE 4						Earnings Per Share

Table 4.1 reconciles basic and diluted EPS amounts:


Earnings per share
Table	4.1
		Years Ended December 31,
(In thousands, except per share data)		2020		2019		2018
Basic earnings per share:
Net income		$	446,093	$	673,763	$	670,097
Weighted average common shares outstanding - basic		339,953		352,827		365,406
Basic earnings per share		$	1.31	$	1.91	$	1.83
Diluted earnings per share:
Net income		$	446,093	$	673,763	$	670,097
Interest expense, net of tax (1):
9% Debentures		17,004		18,264		18,264
Diluted income available to common shareholders		$	463,097	$	692,027	$	688,361
Weighted-average shares - basic		339,953		352,827		365,406
Effect of dilutive securities:
Unvested restricted stock units		1,589		2,069		1,644
9% Debentures		17,751		19,028		19,028
Weighted average common shares outstanding - diluted		359,293		373,924		386,078
Diluted income per share		$	1.29	$	1.85	$	1.78

(1) Interest expense for the years ended December 31, 2020, 2019 and 2018 has been tax effected at a rate of 21%.

For the years ended December 31, 2020, 2019, and 2018, all of our then outstanding 9% Debentures are reflected in diluted earnings per share using the “if-converted” method. Under this method, if dilutive, the common stock related to the outstanding 9% Debentures is assumed issued as of the beginning of the reporting period and the related interest expense, net of tax, is added back to earnings in calculating diluted EPS.