Earnings Per Share (Notes)

3 Months Ended

Mar. 31, 2023

Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares consist of: i) employee stock purchase plan shares; ii) contingently issuable time-based and performance-based restricted stock units, along with associated dividend equivalent rights; and iii) shares issuable pursuant to the Equity Forward Sale Agreement (EFSA). See Note 7, Shareholders’ Equity, for additional information on the EFSA and its impact on earnings per share. Unvested performance-based restricted stock units and associated dividend equivalent rights are included in dilutive potential common shares only after the performance criteria have been met.

For the three months ended March 31, 2023, unvested performance-based restricted stock units and related dividend equivalent rights of 413 thousand shares were excluded from the dilutive calculation because the performance goals had not been met, with 385 thousand shares excluded for the three months ended March 31, 2022.

Net income is the same for both the basic and diluted earnings per share computations. The denominators of the basic and diluted earnings per share computations are as follows (in thousands):


	Three Months Ended March 31,
		2023	2022
Weighted-average common shares outstanding—basic		91,840	89,396
Dilutive effect of potential common shares		731	131
Weighted-average common shares outstanding—diluted		92,571	89,527