Net Income per Common Share

9 Months Ended

Sep. 30, 2022

We allocate net income to (i) noncontrolling interests based upon their contractual rights in the respective subsidiaries or for participating noncontrolling interests based upon their participation in both distributed and undistributed earnings of the Company, (ii) preferred shareholders, for distributions paid or payable, (iii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds (an “preferred share redemption charge”), and (iv) RSUs, for non-forfeitable dividends paid and adjusted for participation rights in undistributed earnings of the Company.

We calculate basic and diluted net income per common share based upon net income allocable to common shareholders, divided by (i) weighted average common shares for basic net income per common share, and (ii) weighted average common shares adjusted for the impact of dilutive stock options outstanding for diluted net income per common share. Potentially dilutive stock options representing 147,344 shares of common stock were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2022, because their effect would have been antidilutive.

The following table reconciles the numerators and denominators of the basic and diluted net income per common shares computation for the three and nine months ended September 30, 2022 and 2021, respectively (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator for basic and dilutive net income per common share – net income allocable to common shareholders	$	2,712,161	$	442,327	$	3,779,666	$	1,174,386

Denominator for basic net income per share - weighted average common shares outstanding	175,283		174,926		175,227		174,787
Net effect of dilutive stock options - based on treasury stock method	1,045		880		1,098		611
Denominator for dilutive net income per share - weighted average common shares outstanding	176,328		175,806		176,325		175,398

Net income per common share:
Basic	$	15.47	$	2.53	$	21.57	$	6.72
Dilutive	$	15.38	$	2.52	$	21.44	$	6.70