Earnings Per Share (Notes)

6 Months Ended

Jun. 30, 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) and at the market offering program. See Note 7, Shareholders’ Equity, for additional information on the EFSA and at the market offering program and the resulting 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 and six months ended June 30, 2023, unvested performance-based restricted stock units and related dividend equivalent rights of 440 thousand shares were excluded from the dilutive calculation because the performance goals had not been met, with 337 thousand shares excluded for the three and six months ended June 30, 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 June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Weighted-average common shares outstanding—basic	97,087	89,225	94,478	89,310
Dilutive effect of potential common shares	543	146	472	139
Weighted-average common shares outstanding—diluted	97,630	89,371	94,950	89,449