EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2023

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 0.7 million and 0.6 million shares for the three and nine months ended March 31, 2023,

respectively, and 0.3 million and 0.6 million shares for the three and nine months ended March 31, 2022, 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,
	2023		2022		2023		2022
Net income from continuing operations attributable to shareholders	$	646,077	$	674,973	$	257,847	$	335,955
Amounts allocated to participating securities	(2,822)		(3,061)		(1,064)		(1,543)
Net income from continuing operations attributable to common shareholders	$	643,255	$	671,912	$	256,783	$	334,412

Basic weighted average common shares	152,281		162,777		155,249		171,481
Potential dilutive shares	3,280		2,835		3,239		2,661
Dilutive weighted average common shares	155,561		165,612		158,488		174,142

Earnings per share from continuing operations attributable to common shareholders:
Basic	$	4.22	$	4.13	$	1.65	$	1.95
Diluted	4.14		4.06		1.62		1.92

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

STOCK-BASED COMPENSATION – We granted 1.1 million and 1.6 million shares under our stock-based compensation plans during the nine months ended March 31, 2023 and March 31, 2022, respectively. Stock-based compensation expense of our continuing operations totaled $8.9 million and $26.8 million for the three and nine months ended March 31, 2023, respectively, and $6.8 million and $20.0 million for the three and nine months ended March 31, 2022, respectively. As of March 31, 2023, unrecognized compensation cost for stock options totaled $0.2 million, and for nonvested shares and units totaled $56.6 million.