Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Calculation of Basic and Diluted EPS

The following table sets forth the allocation of net income for the three months ended March 31, 2022 and March 31, 2021 under the two-class method.


	For the three months ended March 31,
(in millions)	2022		2021
Net income attributable to Penn National Gaming	$	51.7	$	91.0
Net income applicable to preferred stock	0.2		0.5
Net income applicable to common stock	$	51.5	$	90.5

The following table presents the calculation of basic and diluted earnings per share for the Company’s common stock for the three months ended March 31, 2022 and 2021:


	For the three months ended March 31,
(in millions, except per share data)	2022		2021
Calculation of basic earnings per share:
Net income applicable to common stock	$	51.5	$	90.5
Weighted-average shares outstanding - Penn National Gaming	167.5		155.7
Weighted-average shares outstanding - Exchangeable Shares	0.7		—
Weighted-average common shares outstanding - basic	168.2		155.7
Basic earnings per share	$	0.31	$	0.58

Calculation of diluted earnings per share:
Net income applicable to common stock	$	51.5	$	90.5
Interest expense, net of tax (1):
Convertible Notes	1.8		4.3
Diluted income applicable to common stock	$	53.3	$	94.8
Weighted-average common shares outstanding - diluted	184.2		172.8
Diluted earnings per share	$	0.29	$	0.55

(1)The three months ended March 31, 2022 were tax-affected at a rate of 20%.

Schedule of Reconciliation of the Weighted-average Common Shares Outstanding

The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the three months ended March 31, 2022 and 2021:


	For the three months ended March 31,
(in millions)	2022	2021
Weighted-average common shares outstanding	168.2	155.7
Assumed conversion of:
Dilutive stock options	1.5	2.6
Dilutive restricted stock	0.4	0.4
Convertible debt	14.1	14.1
Weighted-average common shares outstanding - Diluted	184.2	172.8