Earnings Per Share

12 Months Ended

Dec. 31, 2019

The Company reports basic and diluted earnings per share. Basic earnings per share is computed by dividing net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the reported period. Diluted earnings per share reflect the potential dilution related to equity-based incentives using the treasury stock method.

The calculation and reconciliation of basic and diluted earnings per share for the years ended December 31 (in thousands, except per share data) follows:



	2019		2018		2017
Net income	$	895,073	$	811,483	$	740,200
Denominator for basic earnings per share	86,401		88,750		91,129
Dilutive securities	3,669		3,401		2,465
Denominator for diluted earnings per share	90,070		92,151		93,594
Basic earnings per share	$	10.36	$	9.14	$	8.12
Diluted earnings per share	9.94		8.81		7.91

Diluted earnings per share for the years ended December 31, 2019, 2018, and 2017 excludes the effect of 19 thousand, 0.4 million and 0.1 million shares, respectively, of common stock that may be issued upon the exercise of employee stock options because such effect would be antidilutive. Diluted earnings per share also excludes the effect of 0.1 million, 0.1 million and 0.3 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for the years ended December 31, 2019, 2018 and 2017, respectively.