Earnings Per Share

12 Months Ended

Dec. 31, 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 years ended December 31 (in thousands, except per share data) follows:


	2020		2019		2018
Net income	$	704,216	$	895,073	$	811,483
Denominator for basic earnings per share	84,005		86,401		88,750
Dilutive securities	2,714		3,669		3,401
Denominator for diluted earnings per share	86,719		90,070		92,151
Basic earnings per share	$	8.38	$	10.36	$	9.14
Diluted earnings per share	8.12		9.94		8.81

Diluted earnings per share for the years ended December 31, 2020, 2019, and 2018 excludes the effect of 0.1 million, 19 thousand and 0.4 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 0.1 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for the years ended December 31, 2020, 2019 and 2018, respectively.