Earnings Per Share

9 Months Ended

Sep. 30, 2020

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 three and nine months ended September 30, 2020, and 2019 is as follows (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income	$	188,817	$	225,805	$	494,365	$	659,563
Denominator for basic earnings per share	83,719		86,662		84,170		86,332
Dilutive securities	2,554		3,860		2,836		3,644
Denominator for diluted earnings per share	86,273		90,522		87,006		89,976
Basic earnings per share	$	2.26	$	2.61	$	5.87	$	7.64
Diluted earnings per share	$	2.19	$	2.49	$	5.68	$	7.33

Diluted earnings per share for the three months ended September 30, 2020 and 2019 excludes the effect of 0.3 million and 27 thousand, respectively, of common stock that may be issued upon the exercise of employee stock options because such effect would be anti-dilutive. Diluted earnings per share also excludes the effect of 0.1 million and 0.1 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for both the three month periods ended September 30, 2020 and 2019, respectively.