Earnings per Share

9 Months Ended

Sep. 30, 2023

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. In the third quarter of 2023, under the terms of our 9% Debentures, we exercised our option to redeem the outstanding principal. (See Note 3 - “Debt ”.)

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)		2023		2022		2023		2022
Basic earnings per share:
Net income		$	182,844	$	249,625	$	528,445	$	673,906
Weighted average common shares outstanding - basic		281,757		302,622		286,184		309,097
Basic earnings per share		$	0.65	$	0.82	$	1.85	$	2.18

Diluted earnings per share:
Net income		$	182,844	$	249,625	$	528,445	$	673,906
Interest expense, net of tax (1):
9% Debentures		276		620		1,025		2,851
Diluted income available to common shareholders		$	183,120	$	250,245	$	529,470	$	676,757

Weighted average common shares outstanding - basic		281,757		302,622		286,184		309,097
Effect of dilutive securities:
Unvested RSUs		2,624		1,902		2,239		1,848
9% Debentures		1,219		2,670		1,501		4,084
Weighted average common shares outstanding - diluted		285,600		307,194		289,924		315,029
Diluted earnings per share		$	0.64	$	0.81	$	1.83	$	2.15

(1) Interest expense has been tax effected at a rate of 21%.