Earnings per Share

3 Months Ended

Mar. 31, 2021

Basic 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 March 31,
(In thousands, except per share data)		2021		2020
Basic earnings per share:
Net income		$	150,021	$	149,805
Weighted average common shares outstanding - basic		338,904		344,053
Basic earnings per share		$	0.44	$	0.44

Diluted earnings per share:
Net income		$	150,021	$	149,805
Interest expense, net of tax (1):
9% Debentures		3,712		4,566
Diluted income available to common shareholders		$	153,733	$	154,371

Weighted average common shares outstanding - basic		338,904		344,053
Effect of dilutive securities:
Unvested RSUs		1,694		2,033
9% Debentures		15,785		19,130
Weighted average common shares outstanding - diluted		356,383		365,216
Diluted earnings per share		$	0.43	$	0.42

(1) Interest expense for the three months ended March 31, 2021 and 2020, respectively, has been tax effected at a rate of 21%.