Earnings Per Share

6 Months Ended

Jun. 30, 2021

Accounting Standards Codification ("ASC") Topic 260, Earnings per Share ("ASC 260") requires a company that has participating security holders (for example, holders of unvested restricted stock that have non-forfeitable dividend rights) to utilize the two-class method for calculating earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings/(loss) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings/(loss) for the reporting period are allocated between common shareholders and other security holders based on their respective rights to receive distributed earnings (i.e., dividends) and undistributed earnings (i.e., net income/(loss)). Our common shares outstanding are comprised of shareholder owned common stock and shares of unvested restricted stock held by participating security holders. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding, excluding participating shares in accordance with ASC 260. To calculate diluted EPS, basic EPS is adjusted to include the effect of potentially dilutive stock options outstanding. The table below shows our basic and diluted EPS calculations.


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

	(Dollars in thousands, except per share amounts)
Numerator
Net income	$	154,352	$	84,396	$	265,042	$	121,156
Less: distributed earnings allocated to participating securities	(133)		(121)		(291)		(256)
Less: undistributed earnings allocated to participating securities	(589)		(363)		(1,067)		(465)
Net income attributable to common stockholders (numerator for basic earnings per share)	153,630		83,912		263,684		120,435
Add back: undistributed earnings allocated to participating securities	589		363		1,067		465
Less: undistributed earnings reallocated to participating securities	(569)		(357)		(1,032)		(455)
Numerator for diluted earnings per share under two class method	$	153,650	$	83,918	$	263,719	$	120,445

Denominator
Weighted-average common shares outstanding	70,291,057		68,057,093		70,044,326		67,775,735
Add: dilutive effect of stock options	2,424,216		1,150,322		2,394,887		1,614,428
Add: dilutive effect of performance share units	—		—		314,928		311,779
Denominator for diluted earnings per share under two class method	72,715,273		69,207,415		72,754,141		69,701,942

Basic Earnings Per Common Share	$	2.19	$	1.23	$	3.76	$	1.78
Diluted Earnings Per Common Share	$	2.11	$	1.21	$	3.62	$	1.73

Diluted EPS for the three and six months ended June 30, 2020 excluded options to purchase 1.3 million and 0.8 million shares, respectively, because the effect of their inclusion would be anti-dilutive. Their were zero anti-dilutive options for both the three and six months ended