Net Income Per Share (Notes)

12 Months Ended

Dec. 31, 2021


10.			Net Income Per Share

We utilize the two-class method to compute net income per share. The two-class method allocates a portion of net income to participating securities, which includes unvested awards of share-based payments with non-forfeitable rights to receive dividends. Net income allocated to unvested share-based payments is excluded from net income allocated to common shares. Any undistributed losses resulting from dividends exceeding net income are not allocated to participating securities. Basic net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of time-vested and performance-based RSUs and outstanding stock options.

The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations:


	Year Ended December 31,
(in thousands)	2021		2020		2019

Net income	$	124,080	$	138,237	$	151,099
Less distributed and undistributed earnings allocated to participating securities	(210)		(782)		(1,759)
Net income allocated to common shares	$	123,870	$	137,455	$	149,340

Weighted average common shares outstanding	38,431		38,503		40,186
Incremental shares from assumed time-vested and performance-based RSU awards and conversions of common stock options	471		317		166
Adjusted weighted average common shares outstanding	38,902		38,820		40,352

Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	—		133		—