Earnings per Share

3 Months Ended

Mar. 31, 2024

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding, including participating securities. Our “participating securities” are comprised of vested restricted stock and restricted stock units (“RSUs”) with non-forfeitable rights to dividends. 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 would have occurred if our 9% Debentures resulted 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.

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)		2024		2023
Basic earnings per share:
Net income		$	174,097	$	154,547
Weighted average common shares outstanding - basic		270,314		290,989
Basic earnings per share		$	0.64	$	0.53

Diluted earnings per share:
Net income		$	174,097	$	154,547
Interest expense, net of tax (1):
9% Debentures		—		375
Diluted income available to common shareholders		$	174,097	$	154,922

Weighted average common shares outstanding - basic		270,314		290,989
Effect of dilutive securities:
Unvested RSUs		2,794		2,079
9% Debentures		—		1,644
Weighted average common shares outstanding - diluted		273,108		294,712
Diluted earnings per share		$	0.64	$	0.53

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