Earnings per Share and Stock Repurchase Program

12 Months Ended

Dec. 31, 2020

Earnings per Share and Stock Repurchase Program

Earnings per Share and Stock Repurchase Program

(12) Earnings per Share and Stock Repurchase Program

The Class A common stock and Class B common stock have equal dividend and liquidation rights. Each share of the Company’s Class A common stock is entitled to one vote on all matters submitted to stockholders and each share of Class B common stock is entitled to ten votes on all such matters. Shares of Class B common stock are convertible into shares of Class A common stock on a one-to-one basis at the option of the holder. As of December 31, 2020, the Company had reserved a total of 2,252,875 shares of Class A common stock for issuance under its stock-based compensation plans and 6,144,290 shares for conversion of Class B common stock to Class A common stock.

Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding. The calculation of diluted net income per share assumes the conversion of all dilutive securities.

Net income and the number of shares used to compute net income per share, basic and assuming full dilution, are reconciled below:

	Year Ended December 31,
	2020					2019					2018
				Per					Per					Per
	Net			Share		Net			Share		Net			Share
	Income		Shares	Amount		Income		Shares	Amount		Income		Shares	Amount
	(Amounts in millions, except per share information)
Basic EPS	$	114.3	33.9	$	3.37	$	131.5	34.1	$	3.86	$	128.0	34.3	$	3.73
Dilutive securities, principally common stock options		—	0.1		(0.01)		—	0.1		(0.01)		—	—		—
Diluted EPS	$	114.3	34.0	$	3.36	$	131.5	34.2	$	3.85	$	128.0	34.3	$	3.73

Since July 27, 2015, the Company’s Board of Directors has authorized two stock repurchase programs. The first program approved the repurchase of up to $100 million and the second repurchase program up to $150 million of the Company’s Class A common stock, to be purchased from time to time on the open market or in privately negotiated transactions. For both stock repurchase programs, the Company has entered into a Rule 10b5-1 plan, which permits shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time, subject to the terms of the Rule 10b5-1 plans the Company entered into with respect to the repurchase program. The Company temporarily suspended the stock repurchase program for a portion of the second quarter of 2020 as a measure to conserve cash in response to the business impact of the COVID-19 pandemic. The repurchase program was reinstated effective June 29, 2020 pursuant to the terms of a new 10b5-1 plan entered into as of June 12, 2020. The $100 million stock repurchase program was completely expended by August 2019. As of December 31, 2020, there was approximately $113.4 million remaining authorized for share repurchases under the $150 million program.

The following table summarizes the cost and the number of shares of Class A common stock repurchased under the two repurchase programs for the years ended December 31, 2020 and 2019:

	Year Ended December 31,
	2020			2019
	Number of shares	Cost of shares		Number of shares	Cost of shares
	repurchased	repurchased		repurchased	repurchased
	(amounts in millions, except share amount)
Stock repurchase programs:
$100 million	—		—	146,304		11.8
$150 million	331,531		28.9	81,316		7.7
Total	331,531	$	28.9	227,620	$	19.5