Earnings Per Share

12 Months Ended

Dec. 31, 2021

On January 28, 2019, MDC’s board of directors approved an 8% stock dividend that was distributed on February 28, 2019 to shareholders of record on February 14, 2019. On January 25, 2021, the Company declared an 8% stock dividend that was distributed on March 17, 2021 to shareholders of record on March 3, 2021. In accordance with ASC 260, basic and diluted earnings per share amounts, weighted-average shares outstanding, and dividends declared per share have been restated for all appropriate periods presented to reflect the effect of these stock dividends. The following table shows our basic and diluted EPS calculations:


	Year Ended December 31,
	2021		2020		2019
	(Dollars in thousands, except per share amounts)
Numerator
Net income	$	573,657	$	367,582	$	238,312
Less: distributed earnings allocated to participating securities	(634)		(583)		(466)
Less: undistributed earnings allocated to participating securities	(2,343)		(1,748)		(1,020)
Net income attributable to common stockholders (numerator for basic earnings per share)	570,680		365,251		236,826
Add back: undistributed earnings allocated to participating securities	2,343		1,748		1,020
Less: undistributed earnings reallocated to participating securities	(2,269)		(1,704)		(992)
Numerator for diluted earnings per share under two class method	$	570,754	$	365,295	$	236,854

Denominator
Weighted-average common shares outstanding	70,174,281		68,531,856		66,546,347
Add: dilutive effect of stock options	2,302,773		1,792,006		1,876,980
Add: dilutive effect of contingently issuable equity awards	377,547		352,719		375,552
Denominator for diluted earnings per share under two class method	72,854,601		70,676,581		68,798,879

Basic Earnings Per Common Share	$	8.13	$	5.33	$	3.56
Diluted Earnings Per Common Share	$	7.83	$	5.17	$	3.44

Diluted EPS for the years ended December 31, 2021, 2020 and 2019 excluded options to purchase approximately 15,000, 400,000, 400,000 shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive.