Income Per Common Share

12 Months Ended

Dec. 31, 2022

Income Per Common Share

Income Per Common Share

Note 2 — Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of shares used to calculate basic income per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and non-participating share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share in the periods the performance targets have been achieved, or would have been achieved if the reporting date was the end of the contingency period. Upon the adoption of ASU 2020-06 on January 1, 2022, the Company includes the dilutive effect of shares issuable upon conversion of its Notes in the calculation of diluted income per share using the if-converted method. Prior to the adoption of ASU 2020-06, based on the Company’s ability and intent to settle the principal amount of its convertible senior notes in cash, and the excess of the principal portion in shares of its common stock, the Company accounted for the conversion spread using the treasury stock method, and the shares issuable upon conversion of the Notes were not included in the calculation of diluted earnings per share except to the extent that the conversion value of the Notes exceeds their principal amount and if the effect would be dilutive.

The computations of basic and diluted income (loss) per share for the years ended December 31, 2022, 2021, and 2020 are as follows:

	For the year ended December 31,
	2022		2021		2020
	(in thousands, except per share amounts)
Numerator:
Net income	$	166,942	$	26,038	$	(8,391)
Interest expense associated with convertible notes		10,832		—		—
Net income available to common shareholders	$	177,774	$	26,038	$	(8,391)
Denominator:
Basic weighted average shares outstanding		49,906		49,073		48,362
Effect of potentially dilutive share-based awards		734		1,090		—
Dilutive effect of convertible notes		14,967		3,480		—
Diluted weighted average shares outstanding		65,607		53,643		48,362
Net income per common share:
Basic	$	3.35	$	0.53	$	(0.17)
Diluted	$	2.71	$	0.49	$	(0.17)
Unvested participating shares excluded from basic weighted average shares outstanding since the securityholders are not obligated to fund losses		—		6		20
Common share equivalents excluded from the diluted weighted average shares outstanding since the Company incurred a net loss and their effect would be antidilutive		—		—		947
Potentially dilutive shares excluded from the diluted calculation as their effect would be antidilutive		815		456		923
Maximum potential shares to be issued for settlement of the convertible notes excluded from the diluted calculation as their effect would be antidilutive		—		8,421		17,753