Earnings Per Share

9 Months Ended

Sep. 30, 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 205,000 for the three months ended September 30, 2023 and 213,000 for the three months ended September 30, 2022, and 207,000 for the nine months ended September 30, 2023 and 223,000 for the nine months ended September 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income	$	137,843	$	190,055	$	471,792	$	676,600
Amounts allocated to participating securities	(726)		(1,019)		(2,504)		(3,764)
Net income attributable to common stockholders	$	137,117	$	189,036	$	469,288	$	672,836

Weighted average common shares outstanding:
Basic	38,735		39,214		38,816		39,599
Effect of dilutive securities:
Stock options and employee stock purchase plan	288		366		296		413
Diluted	39,023		39,580		39,112		40,012

Earnings per share attributable to common stockholders:
Basic	$	3.54	$	4.82	$	12.09	$	16.99
Diluted	$	3.51	$	4.78	$	12.00	$	16.82

Anti-dilutive stock options excluded from diluted earnings per share computations (1)	31		33		64		33

(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.