Earnings per Share

12 Months Ended

Dec. 31, 2021

The basic and diluted earnings per share (“EPS”), and the basic and diluted weighted average shares outstanding for all periods as presented in the accompanying consolidated statements of income are shown below:


	For the year ended December 31,
	(In thousands, except per share amounts)
Earnings per share:	2021		2020		2019
Basic earnings per common share	$	2.23	$	3.03	$	3.17
Diluted earnings per common share	$	2.22	$	3.02	$	3.16
Basic weighted average shares outstanding	30,625		30,510		30,511
Diluted weighted average shares outstanding	30,664		30,571		30,594

Basic EPS is equal to net income attributable to Ebix, Inc. divided by the weighted average number of shares of common stock outstanding for the period. Diluted EPS takes into consideration common stock equivalents, which for the Company consist of stock options and restricted stock. With respect to stock options, diluted EPS is calculated as if the Company had additional common stock outstanding from the beginning of the year or the date of grant or issuance, net of assumed repurchased shares using the treasury stock method. With respect to restricted stock, diluted EPS is calculated as if the Company had additional common stock outstanding from the beginning of the year or the date of grant or issuance. Diluted EPS is equal to net income attributable to Ebix, Inc. divided by the combined sum of the weighted average number of shares outstanding and common stock equivalents. At December 31, 2021, 2020, and 2019 there were 177,000, 181,875, and 181,875, respectively, of potentially issuable shares with respect to stock options which could dilute EPS in the future but which were excluded from the diluted EPS calculation because presently their effect is anti-dilutive. Diluted shares outstanding are determined as follows for each year ended December 31, 2021, 2020, and 2019:


	For the year ended December 31,
	(In thousands)
	2021	2020	2019
Basic weighted average shares outstanding	30,625	30,510	30,511
Incremental shares for common stock equivalents	39	61	83
Diluted shares outstanding	30,664	30,571	30,594