Earnings Per Share |
EARNINGS PER SHARE We compute basic earnings per share for Common Stock and Class B common stock using the two-class method. The Class B common stock is convertible into Common Stock on a share-for-share basis at any time. The computation of diluted earnings per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings per share of Class B common stock does not assume the conversion of those shares. We compute basic and diluted earnings per share based on the weighted-average number of shares of Common Stock and Class B common stock outstanding as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the years ended December 31, | | 2021 | | 2020 | | 2019 | | | Common Stock | | Class B Common Stock | | Common Stock | | Class B Common Stock | | Common Stock | | Class B Common Stock | Basic earnings per share: | | | | | | | | | | | | | Numerator: | | | | | | | | | | | | | Allocation of distributed earnings (cash dividends paid) | | $ | 498,084 | | | $ | 187,903 | | | $ | 467,013 | | | $ | 173,719 | | | $ | 445,685 | | | $ | 164,627 | | Allocation of undistributed earnings | | 574,772 | | | 216,753 | | | 464,802 | | | 173,174 | | | 393,731 | | | 145,649 | | Total earnings—basic | | $ | 1,072,856 | | | $ | 404,656 | | | $ | 931,815 | | | $ | 346,893 | | | $ | 839,416 | | | $ | 310,276 | | | | | | | | | | | | | | | Denominator (shares in thousands): | | | | | | | | | | | | | Total weighted-average shares—basic | | 146,120 | | | 60,614 | | | 147,832 | | | 60,614 | | | 148,841 | | | 60,614 | | | | | | | | | | | | | | | Earnings Per Share—basic | | $ | 7.34 | | | $ | 6.68 | | | $ | 6.30 | | | $ | 5.72 | | | $ | 5.64 | | | $ | 5.12 | | | | | | | | | | | | | | | Diluted earnings per share: | | | | | | | | | | | | | Numerator: | | | | | | | | | | | | | Allocation of total earnings used in basic computation | | $ | 1,072,856 | | | $ | 404,656 | | | $ | 931,815 | | | $ | 346,893 | | | $ | 839,416 | | | $ | 310,276 | | Reallocation of total earnings as a result of conversion of Class B common stock to Common stock | | 404,656 | | | — | | | 346,893 | | | — | | | 310,276 | | | — | | Reallocation of undistributed earnings | | — | | | (1,098) | | | — | | | (822) | | | — | | | (886) | | Total earnings—diluted | | $ | 1,477,512 | | | $ | 403,558 | | | $ | 1,278,708 | | | $ | 346,071 | | | $ | 1,149,692 | | | $ | 309,390 | | | | | | | | | | | | | | | Denominator (shares in thousands): | | | | | | | | | | | | | Number of shares used in basic computation | | 146,120 | | | 60,614 | | | 147,832 | | | 60,614 | | | 148,841 | | | 60,614 | | Weighted-average effect of dilutive securities: | | | | | | | | | | | | | Conversion of Class B common stock to Common shares outstanding | | 60,614 | | | — | | | 60,614 | | | — | | | 60,614 | | | — | | Employee stock options | | 609 | | | — | | | 600 | | | — | | | 785 | | | — | | Performance and restricted stock units | | 415 | | | — | | | 368 | | | — | | | 462 | | | — | | Total weighted-average shares—diluted | | 207,758 | | | 60,614 | | | 209,414 | | | 60,614 | | | 210,702 | | | 60,614 | | | | | | | | | | | | | | | Earnings Per Share—diluted | | $ | 7.11 | | | $ | 6.66 | | | $ | 6.11 | | | $ | 5.71 | | | $ | 5.46 | | | $ | 5.10 | |
The earnings per share calculations for the years ended December 31, 2021, 2020 and 2019 excluded 43, 15 and 1,476 stock options (in thousands), respectively, that would have been antidilutive.
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