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Earnings Per Share | Earnings Per ShareBasic earnings per share is calculated by dividing net earnings attributable to Encore by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares during the period. Dilutive potential common shares include outstanding stock options, non-vested share awards, and the dilutive effect of the convertible and exchangeable senior notes, if applicable. The Company adopted ASU 2020-06 on January 1, 2021, using a modified retrospective approach. Effective January 1, 2021, the dilutive effect of the Company’s convertible and exchangeable notes is calculated using the if-converted method. Prior to the adoption, the dilutive effect of the convertible and exchangeable notes was calculated using the treasury stock method. Since all of the Company’s convertible and exchangeable notes require net share settlement, using the if-converted method results in a similar dilutive effect as using the treasury stock method under the previous accounting standard, due to the fact that only in-the-money shares are included in the dilutive effect. The Company had 0.2 million and 0.1 million shares of dilutive effect from its convertible and exchangeable notes during the three and six months ended June 30, 2021. On August 12, 2015, the Company’s Board of Directors approved a $50.0 million share repurchase program. On May 5, 2021, the Company announced that the Board of Directors had approved an increase in the size of the repurchase program from $50.0 million to $300.0 million (an increase of $250.0 million). Repurchases under this program are expected to be made with cash on hand and may be made from time to time, subject to market conditions and other factors, in the open market, through private transactions, block transactions, or other methods as determined by the Company’s management and Board of Directors, and in accordance with market conditions, other corporate considerations, and applicable regulatory requirements. The program does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company’s discretion. During the three and six months ended June 30, 2021, the Company repurchased 604,995 and 1,122,855 shares of our common stock for approximately $27.0 million and $47.4 million, respectively. The Company’s practice is to retire the shares repurchased. A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands, except per share amounts): Anti-dilutive employee stock options outstanding were 0 and approximately 7,000 during the three and six months ended June 30, 2021, respectively. Anti-dilutive employee stock options outstanding were approximately 164,000 and 89,000 during each of the three and six months ended June 30, 2020, respectively.
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