Earnings Per Share

9 Months Ended

Sep. 30, 2025

Note 2 – Earnings Per Share

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 184,000 for the three and nine months ended September 30, 2025 and 206,000 for the three and nine months ended September 30, 2024.

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,
	2025			2024			2025			2024
Net income	$	127,013		$	125,701		$	374,816		$	397,025
Amounts allocated to participating securities		(626	)		(654	)		(1,847	)		(2,071	)
Net income attributable to common stockholders	$	126,387		$	125,047		$	372,969		$	394,954

Weighted average common shares outstanding:
Basic		37,090			37,983			37,272			38,104
Effect of dilutive securities:
Stock options and employee stock purchase plan		133			204			148			226
Diluted		37,223			38,187			37,420			38,330

Earnings per share attributable to common stockholders:
Basic		3.41		$	3.29			10.01		$	10.37
Diluted		3.40		$	3.27			9.97		$	10.30

Anti-dilutive stock options excluded from diluted earnings per share computations (¹)		188			88			190			57

(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.