EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 0.3 million and 0.6 million shares for the three and nine months ended March 31, 2022, respectively, and 0.6 million and 0.9 million shares for the three and nine months ended March 31, 2021, respectively, as the effect would be antidilutive.

The computations of basic and diluted earnings per share from continuing operations are as follows:


(in 000s, except per share amounts)
	Three months ended March 31,				Nine months ended March 31,
	2022		2021		2022		2021
Net income from continuing operations attributable to shareholders	$	674,973	$	759,672	$	335,955	$	444,773
Amounts allocated to participating securities	(3,061)		(3,374)		(1,543)		(1,908)
Net income from continuing operations attributable to common shareholders	$	671,912	$	756,298	$	334,412	$	442,865
Basic weighted average common shares	162,777		182,204		171,481		186,162
Potential dilutive shares	2,835		2,701		2,661		1,971
Dilutive weighted average common shares	165,612		184,905		174,142		188,133
Earnings per share from continuing operations attributable to common shareholders:
Basic	$	4.13	$	4.15	$	1.95	$	2.38
Diluted	4.06		4.09		1.92		2.35

The decrease in the weighted average shares outstanding is due to share repurchases completed in the current and prior fiscal years.

STOCK-BASED COMPENSATION – During the nine months ended March 31, 2022, we granted 1.6 million shares under our stock-based compensation plan. We granted awards of 0.7 million shares under our stock-based compensation plans during the nine months ended March 31, 2021. The increase in shares granted compared to the prior year is a result of the change in timing of grants due to the change in our fiscal year. Stock-based compensation expense of our continuing operations totaled $6.8 million and $20.0 million for the three and nine months ended March 31, 2022, respectively, and $7.8 million and $21.2 million for the three and nine months ended March 31, 2021, respectively. As of March 31, 2022, unrecognized compensation cost for stock options totaled $0.5 million, and for nonvested shares and units totaled $44.9 million.