Earnings Per Share (Notes)

12 Months Ended

Dec. 31, 2022


10.			Earnings Per Share

From 2009 through 2021, we used the two-class method to compute basic earnings per share (“Basic EPS”) and diluted earnings per share ("Diluted EPS"). Under the accounting guidance for the calculation of earnings per share for share-based payment awards with rights to dividends or dividend equivalents, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of Basic EPS and Diluted EPS using the two-class method.

In 2022, our share-based payment awards with non-forfeitable rights to dividends became fully vested. As a result, we are no longer required to use the two-class method and, at December 31, 2022, we used the treasury stock method to calculate earnings per share.

Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the dilutive effect of time-vested and performance-based RSUs.

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


	Year Ended December 31,
(in thousands)	2022		2021		2020

Net income	$	179,350	$	124,080	$	138,237
Less distributed and undistributed earnings allocated to participating securities	—		(210)		(782)
Net income allocated to common shares	$	179,350	$	123,870	$	137,455

Weighted average common shares outstanding	38,115		38,431		38,503
Incremental shares from assumed time-vested and performance-based RSU awards and conversions of common stock options	501		471		317
Adjusted weighted average common shares outstanding	38,616		38,902		38,820

Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	10		—		133