Earnings per Share

3 Months Ended

Mar. 31, 2022

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)		2022		2021
Basic earnings per share:
Net income		$	175,013	$	150,021
Weighted average common shares outstanding - basic		315,975		338,904
Basic earnings per share		$	0.55	$	0.44

Diluted earnings per share:
Net income		$	175,013	$	150,021
Interest expense, net of tax (1):
9% Debentures		1,512		3,712
Diluted income available to common shareholders		$	176,525	$	153,733

Weighted average common shares outstanding - basic		315,975		338,904
Effect of dilutive securities:
Unvested RSUs		2,029		1,694
9% Debentures		6,534		15,785
Weighted average common shares outstanding - diluted		324,538		356,383
Diluted earnings per share		$	0.54	$	0.43

(1) Interest expense for the three months ended March 31, 2022 and 2021, respectively, has been tax effected at a rate of 21%.