Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Equity

9. Equity

Dividends

In May 2021, we initiated a new annual dividend on our shares of common stock, expected to be paid quarterly. The table below presents the dividends paid during the Current Period and Prior Period:

	Base		Variable		Rate Per Share		Total
2023:
First Quarter	$	0.55	$	0.74	$	1.29	$	175
Second Quarter	$	0.55	$	0.63	$	1.18	$	160
Third Quarter	$	0.575	$	—	$	0.575	$	77
2022:
First Quarter	$	0.4375	$	1.33	$	1.7675	$	210
Second Quarter	$	0.50	$	1.84	$	2.34	$	298
Third Quarter	$	0.55	$	1.77	$	2.32	$	280

On October 31, 2023, we declared a base quarterly dividend payable of $0.575 per share, which will be paid on December 6, 2023 to stockholders of record at the close of business on November 16, 2023.

Share Repurchase Program

As of December 2, 2021, the Company was authorized to purchase up to $1.0 billion of the Company’s common stock and/or warrants under a share repurchase program, and in March 2022, we commenced our share repurchase program. In June 2022, our Board of Directors authorized an expansion of the share repurchase program by $1.0 billion, bringing the total authorized share repurchase amount to $2.0 billion for stock and/or warrants. The share repurchase program will expire on December 31, 2023.

The table below presents the shares purchased under our share repurchase program:

	Shares Purchased (thousands)	Dollar Value of Shares Purchased		Average Price Per Share
2022
First Quarter	1,000	$	83	$	82.98
Second Quarter	5,812	$	515	$	88.67
Third Quarter	750	$	69	$	92.14
Fourth Quarter	4,105	$	406	$	98.90
2023
First Quarter	793	$	60	$	74.95
Second Quarter(a)	1,444	$	115	$	78.77
Third Quarter(b)	1,509	$	130	$	86.16
Total to date	15,413	$	1,378

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(a)On May 26, 2023, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $50 million of shares of our common stock. Under the terms of the ASR agreement, we received an initial delivery of 515,265 shares representing approximately 80% of the expected total to be repurchased. Upon final settlement of the ASR agreement on July 31, 2023, we received an additional 108,556 shares of common stock.

(b)On September 15, 2023, we entered into an ASR agreement to repurchase $50 million of shares of our common stock. Under the terms of the ASR agreement, we received an initial delivery of 468,055 shares representing approximately 80% of the expected total to be repurchased. Upon final settlement of the ASR agreement on October 26, 2023, we received an additional 116,250 shares of common stock.

The repurchased shares of common stock were retired and recorded as a reduction to common stock and retained earnings. All share repurchases made after January 1, 2023 are subject to a 1% excise tax on share repurchases, as enacted under the Inflation Reduction Act of 2022. We are able to net this 1% excise tax on share repurchases against the issuance of shares of our common stock. The impact of this 1% excise tax was immaterial during the Current Period.

Warrants

	Class A Warrants	Class B Warrants	Class C Warrants(a)
Outstanding as of December 31, 2022	4,495,004	4,404,564	4,006,229
Converted into common stock(b)	(3,000)	(1,000)	(170)
Outstanding as of March 31, 2023	4,492,004	4,403,564	4,006,059
Converted into common stock(b)	—	(500)	(467)
Outstanding as of June 30, 2023	4,492,004	4,403,064	4,005,592
Converted into common stock(b)	—	—	(2,575)
Outstanding as of September 30, 2023	4,492,004	4,403,064	4,003,017

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(a)As of September 30, 2023, we had 1,489,337 of reserved Class C Warrants.

(b)During the Current Period, we issued 7,341 shares of common stock as a result of Warrant exercises.