Earnings Per Share

12 Months Ended

Dec. 31, 2023

As discussed in Note 14, the Company has stock option awards and restricted stock 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 and restricted stock awards represent participating securities under authoritative guidance. The Company recognizes payments of the dividend equivalent rights ($3,463, $4,239, and $3,832, for the years ended December 31, 2023, 2022 and 2021, respectively) on these options and restricted stock awards as reductions in additional paid-in-capital on the Company’s consolidated balance sheets. Income from continuing operations attributable to participating securities represent the undistributed earnings allocated to the participating securities using the two-class method permitted by U.S. GAAP for computing diluted earnings per share (“EPS”). 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 EPS for the years ended December 31, 2023, 2022 and 2021, respectively, the Company has adjusted its net income for the effect of these participating securities as follows:

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


	For the year ended December 31,
	2023		2022		2021
Net income attributed to Vector Group Ltd. from continuing operations	$	183,526	$	158,701	$	147,154
Net income attributed to Vector Group Ltd. from discontinued operations	—		—		72,309
Net income attributed to Vector Group Ltd.	183,526		158,701		219,463
Income from continuing operations attributable to participating securities	(5,005)		(4,947)		(5,862)
Net income available to common stockholders attributed to Vector Group Ltd.	$	178,521	$	153,754	$	213,601

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,
	2023		2022		2021
Net income attributed to Vector Group Ltd. from continuing operations	$	183,526	$	158,701	$	147,154
Income from continuing operations attributable to participating securities	(5,005)		(4,947)		(3,694)
Net income available to common stockholders attributed to Vector Group Ltd.	$	178,521	$	153,754	$	143,460

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 for purposes of determining diluted EPS for discontinued operations and net income available to common stockholders attributed to Vector Group Ltd. were as follows:


	For the year ended December 31,
	2023		2022		2021
Net income attributed to Vector Group Ltd. from continuing operations	$	183,526	$	158,701	$	147,154
Net income attributed to Vector Group Ltd. from discontinued operations	—		—		72,309
Net income attributed to Vector Group Ltd.	183,526		158,701		219,463

Income from continuing operations attributable to participating securities	(5,005)		(4,947)		(5,862)
Net income available to common stockholders attributed to Vector Group Ltd.	$	178,521	$	153,754	$	213,601

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,
	2023		2022		2021
Net income attributed to Vector Group Ltd. from continuing operations	$	183,526	$	158,701	$	147,154

Income from continuing operations attributable to participating securities	(5,005)		(4,947)		(3,694)
Net income available to common stockholders attributed to Vector Group Ltd.	$	178,521	$	153,754	$	143,460

Basic and diluted EPS for continuing and discontinued operations were calculated using the following common shares for the years ended December 31, 2023, 2022 and 2021:


	For the year ended December 31,
	2023	2022	2021
Weighted-average shares for basic EPS	153,196,070	152,752,874	152,403,072

Incremental shares related to stock options and non-vested restricted stock	134,718	141,977	71,777

Weighted-average shares for diluted EPS	153,330,788	152,894,851	152,474,849

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 was outstanding during the years ended December 31, 2023, 2022 and 2021, respectively, but was not included in the computation of diluted EPS because the impact of the per-share expense associated with the non-vested restricted stock was greater than the average market price of the common shares during the respective periods.


	Year Ended December 31,
	2023		2022		2021


Weighted-average shares of non-vested restricted stock	—		1,973		524,606
Weighted-average expense per share	$	—	$	11.23	$	17.42