Earnings Per Share

6 Months Ended

Jun. 30, 2022

We calculate basic and diluted earnings per share using the two-class method. Earnings per share under the two-class method is calculated using net income attributable to common stockholders, which is net income reduced by the earnings allocated to participating securities. Our participating securities include share-based payment awards that contain a non-forfeitable right to receive dividends and are considered to participate in undistributed earnings with common shareholders. Participating securities excluded from weighted average common shares outstanding were 218 thousand in the second quarter of 2022 and 229 thousand for the six months ended June 30, 2022.

The table below presents the computation of earnings per share, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except per share data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income	$	307,283	$	259,695	$	486,544	$	358,350
Amounts allocated to participating securities	(1,680)		—		(2,762)		—
Net income attributable to common stockholders	$	305,603	$	259,695	$	483,782	$	358,350

Weighted average common shares outstanding:
Basic	39,660		40,125		39,795		40,169
Effect of dilutive securities:
Stock options and employee stock purchase plan	404		620		436		631
Diluted	40,064		40,745		40,231		40,800

Earnings per share attributable to common stockholders:
Basic	$	7.71	$	6.47	$	12.16	$	8.92
Diluted	$	7.63	$	6.37	$	12.03	$	8.78

Anti-dilutive stock options excluded from diluted earnings per share computations (1)	33		—		1		—

(1)Since these options have exercise prices that are higher than the average market prices of our common stock, including them in the calculation would have an anti-dilutive effect on earnings per share.