Earnings Per Share

12 Months Ended

Dec. 31, 2022

EARNINGS PER SHARE

As discussed in Note 14, the Company has stock option awards which provide for common stock dividend equivalents at the same rate as paid on the common stock with respect to the shares underlying the unexercised portion of the options. These outstanding options represent participating securities under authoritative guidance. The Company recognizes payments of the dividend equivalent rights ($4,239, $3,832, and $3,684, for the years ended December 31, 2022, 2021 and 2020, respectively) on these options as reductions in additional paid-in-capital on the Company’s consolidated balance sheets. The Company included the income tax benefit associated with the dividend equivalent rights as a component of income tax expense due to the adoption of ASU 2016-09. As a result, in its calculation of basic earnings per share (“EPS”) for the years ended December 31, 2022, 2021 and 2020, respectively, the Company has adjusted its net income for the effect of these participating securities as follows:

Net income (loss) for purposes of determining basic EPS for discontinued operations and net income available to common stockholders attributed to Vector Group Ltd. was as follows:


	For the year ended December 31,
	2022		2021		2020
Net income attributed to Vector Group Ltd. from continuing operations	$	158,701	$	147,154	$	126,922
Net income (loss) attributed to Vector Group Ltd. from discontinued operations	—		72,309		(33,984)
Net income attributed to Vector Group Ltd.	158,701		219,463		92,938
Income from continuing operations attributable to participating securities	(4,947)		(5,862)		(2,560)
Net income available to common stockholders attributed to Vector Group Ltd.	$	153,754	$	213,601	$	90,378

Net income for purposes of determining basic EPS for continuing operations applicable to common shares attributed to Vector Group Ltd. was as follows:


	For the year ended December 31,
	2022		2021		2020
Net income attributed to Vector Group Ltd. from continuing operations	$	158,701	$	147,154	$	126,922
Income from continuing operations attributable to participating securities	(4,947)		(3,694)		(2,580)
Net income available to common stockholders attributed to Vector Group Ltd.	$	153,754	$	143,460	$	124,342

Basic EPS is computed by dividing net income available to common stockholders attributed to Vector Group Ltd. by the weighted-average number of shares outstanding, which includes vested restricted stock.

Net income (loss) for purposes of determining diluted EPS for discontinued operations and net income available to common stockholders attributed to Vector Group Ltd. was as follows:


	For the year ended December 31,
	2022		2021		2020
Net income attributed to Vector Group Ltd. from continuing operations	$	158,701	$	147,154	$	126,922
Net income (loss) attributed to Vector Group Ltd. from discontinued operations	—		72,309		(33,984)
Net income attributed to Vector Group Ltd.	158,701		219,463		92,938

Income from continuing operations attributable to participating securities	(4,947)		(5,862)		(2,560)
Net income available to common stockholders attributed to Vector Group Ltd.	$	153,754	$	213,601	$	90,378

Net income for purposes of determining diluted EPS for continuing operations applicable to common shares attributed to Vector Group Ltd. was as follows:


	For the year ended December 31,
	2022		2021		2020
Net income attributed to Vector Group Ltd. from continuing operations	$	158,701	$	147,154	$	126,922

Income from continuing operations attributable to participating securities	(4,947)		(3,694)		(2,580)
Net income available to common stockholders attributed to Vector Group Ltd.	$	153,754	$	143,460	$	124,342

Basic and diluted EPS for continuing and discontinued operations were calculated using the following common shares for the years ended December 31, 2022, 2021 and 2020:


	For the year ended December 31,
	2022	2021	2020
Weighted-average shares for basic EPS	152,752,874	152,403,072	150,216,141

Incremental shares related to stock options and non-vested restricted stock	141,977	71,777	34,812

Weighted-average shares for diluted EPS	152,894,851	152,474,849	150,250,953

It may not be possible to recalculate EPS attributable to common stockholders by adjusting EPS from continuing operations by EPS from discontinued operations as each amount is calculated independently.

The following non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the years ended December 31, 2022, 2021 and 2020, but were not included in the computation of diluted EPS because the impact of common shares issuable under the convertible debt were anti-dilutive to EPS.


	Year Ended December 31,
	2022		2021		2020


Weighted-average shares of non-vested restricted stock	1,973		524,606		520,936
Weighted-average expense per share	$	11.23	$	17.42	$	19.54
Weighted-average number of shares issuable upon conversion of debt	—		—		2,423,719
Weighted-average conversion price	$	—	$	—	$	20.27