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Earnings per Share (Tables)
3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share
For the three months ended March 31, 2024, we recorded a net loss attributable to PENN. As such, because the dilution from potential common shares was anti-dilutive, we used basic weighted-average common shares outstanding, rather than diluted weighted-average common shares outstanding when calculating diluted loss per share. Stock options, restricted stock, and convertible debt that could potentially dilute basic EPS in the future that were not included in the computation of diluted loss per share were as follows:
(in millions)
For the three months ended March 31, 2024
Assumed conversion of dilutive stock options0.2 
Assumed conversion of dilutive restricted stock0.2 
Assumed conversion of convertible debt14.1 
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, 2023 under the two-class method. For the three months ended March 31, 2024, we did not utilize the two-class method due to all preferred shares being converted as part of the Barstool SPA during the third quarter of 2023 as discussed in Note 12, “Stockholders’ Equity and Stock-Based Compensation”.
(in millions)
For the three months ended March 31, 2023
Net income attributable to PENN Entertainment, Inc.$514.5 
Net income applicable to preferred stock1.7 
Net income applicable to common stock$512.8 
The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the three months ended March 31, 2024 and 2023:
For the three months ended March 31,
(in millions, except per share data)20242023
Calculation of basic earnings (loss) per share:
Net income (loss) applicable to common stock$(114.7)$512.8 
Weighted-average shares outstanding — PENN Entertainment, Inc.151.4 152.7 
Weighted-average shares outstanding — Exchangeable Shares
0.5 0.6 
Weighted-average common shares outstanding — basic
151.9 153.3 
Basic earnings (loss) per share$(0.76)$3.35 
Calculation of diluted earnings (loss) per share:
Net income (loss) applicable to common stock$(114.7)$512.8 
Interest expense, net of tax (1):
Convertible Notes— 1.8 
Diluted income (loss) applicable to common stock$(114.7)$514.6 
Weighted-average common shares outstanding — diluted
151.9 168.6 
Diluted earnings (loss) per share$(0.76)$3.05 
(1)The three months ended March 31, 2023 were tax-affected at a rate of 21%.
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, 2024 and 2023:
For the three months ended March 31,
(in millions)20242023
Weighted-average common shares outstanding—basic151.9 153.3 
Assumed conversion of:
Dilutive stock options— 0.9 
Dilutive restricted stock— 0.3 
Convertible debt— 14.1 
Weighted-average common shares outstanding—diluted151.9 168.6