Earnings per Common Share

3 Months Ended

Mar. 31, 2023

Earnings per Common Share

Earnings per Common Share

11. Earnings per Common Share

The Company computes basic net income per share using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units, and convertible debt. The dilutive effect of outstanding warrants and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method whereas the Convertible Debt uses the if converted method.

The following table provides the basic and diluted earnings per share by reconciling the numerators and denominators of the computations:

		Three Months Ended March 31,
		2023		2022
(In Thousands)
Net income attributable to common shares	$	198,108	$	271,872
Adjustment of interest expense attributable to Convertible Notes		108		2,309
Diluted net income attributable to common stockholders		198,216		274,181
Basic weighted average shares outstanding		17,924		15,448
Effect of dilutive securities		1,524		1,651
Convertible Notes (a)		336		4,172
Diluted weighted average shares outstanding		19,784		21,271

(a) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2023. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share.