Earnings Per Share

3 Months Ended

Mar. 31, 2023

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 213,000 for the three months ended March 31, 2023 and 239,000 for the three months ended March 31, 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
	March 31,
	2023		2022
Net income	$	101,699	$	179,261
Amounts allocated to participating securities	(548)		(1,051)
Net income attributable to common stockholders	$	101,151	$	178,210

Weighted average common shares outstanding:
Basic	38,877		39,932
Effect of dilutive securities:
Stock options and employee stock purchase plan	312		460
Diluted	39,189		40,392

Earnings per share attributable to common stockholders:
Basic	$	2.60	$	4.46
Diluted	$	2.58	$	4.41

Anti-dilutive stock options excluded from diluted earnings per share computations (1)	64		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.