Net Income Per Common Share

6 Months Ended

Jun. 30, 2023

Net Income Per Common Share [Abstract]

Net Income Per Common Share

Note 8 – Net Income per Common Share

Basic net income per common share is based on the weighted average number of common shares outstanding and the weighted average minimum number of shares issued upon settlement of the stock purchase contracts issued under the tangible equity units. Diluted net income per common share is based on the weighted average number of common shares outstanding and potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted net income per common share. The dilutive effect of stock-based compensation is calculated using the treasury stock method and expected proceeds upon exercise of the stock-based compensation. The treasury stock method assumes that the proceeds from stock-based compensation is used to purchase the Company’s common stock at the average market price during the period. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share: 

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2023	2022	2023	2022
Average common shares outstanding during the period for basic computation	264,418	262,099	264,306	262,026
Effect of dilutive securities:
Employee stock-based compensation	400	459	534	519
Average common shares outstanding during the period for diluted computation	264,818	262,558	264,840	262,545

Based on the minimum number of shares to be issued upon settlement of the stock purchase contracts issued in April 2019 under the tangible equity units, the average common shares outstanding during the period for basic computation includes the weighted-average impact of the following shares: 2,830,021 shares for the three and six months ended June 30, 2023; and, 5,912,617 shares for the three and six months ended June 30, 2022. On May 2, 2022, all of the remaining stock purchase contracts under the tangible equity units were mandatorily settled.

The number of outstanding employee stock options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was: 150,062 for the three and six months ended June 30, 2023; and, 83,080 for the three and six months ended June 30, 2022. Additionally, the dilutive effect of performance share units and restricted share units granted are included in the Company’s calculation of diluted net income per share.