Earnings per Common Share

3 Months Ended

Mar. 31, 2022

Earnings Per Common ShareBasic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share (“Diluted EPS”) takes into account the potential dilution that could occur if outstanding securities were exercised. Dilutive securities that may impact Diluted EPS include shares underlying outstanding stock options, restricted stock units and performance share units granted to employees and non-employee directors (see Note 13), as well as common shares underlying the Convertible Notes (see Note 6). Dilutive securities related to common shares underlying outstanding stock options, restricted stock units, and performance share units granted to employees and non-employee directors are included in the calculation of diluted earnings per common share using the treasury stock method in accordance with ASC Topic 260, “Earnings per Share.” Dilutive securities related to common shares underlying the Convertible Notes are included in the calculation of diluted earnings per common share using the if-converted method in accordance with ASU 2020-06, which was adopted by the Company on January 1, 2022 (see Note 2).

Weighted-average common shares outstanding—diluted and weighted-average common shares outstanding—basic are the same in periods when a net loss is reported or in periods when anti-dilution occurs.

The following table summarizes the computation of basic and diluted earnings per share (in millions, except per share data):


	Three Months Ended March 31,
		2022		2021
Earnings per common share—basic
Net income		$	86.7	$	272.5
Weighted-average common shares outstanding—basic(1)		185.1		117.5
Basic earnings per common share		$	0.47	$	2.32

Earnings per common share—diluted
Net income		$	86.7	$	272.5
Interest expense(2)		1.6		—
Net income attributable to diluted earnings per common share		$	88.3	$	272.5

Weighted-average common shares outstanding—basic(1)		185.1		117.5
Convertible Notes weighted-average shares outstanding (2)		14.7		5.4
Outstanding options, restricted stock units and performance share units		1.0		1.7
Weighted-average common shares outstanding—diluted		200.8		124.6
Diluted earnings per common share		$	0.44	$	2.19

(1) In connection with the Topgolf merger, the Company issued 89.8 million of its common stock to shareholders of Topgolf, and 0.2 million of its common stock for restricted stock awards converted in the merger (Note 13), of which 23.0 million weighted average shares were included in the basic and diluted share calculations based on the number of days the shares were outstanding during the three months ended March 31, 2021.
(2) As of January 1, 2022, in connection with the adoption of ASU 2020-06 (Note 2), the Company started using the if-converted method for calculating the dilutive weighted average shares outstanding related to the Convertible Notes for purposes of calculating diluted earnings per common share. Under this method, interest expense related to the Convertible Notes for the period is excluded from net income. Prior to the adoption of ASU 2020-06, the Company used the treasury stock method for calculating the dilutive impact from the Convertible Notes.

Options, Restricted Stock Units and Performance Share Units

For the three months ended March 31, 2022, 1.3 million securities outstanding comprised of anti-dilutive restricted stock units were excluded from the calculation of earnings per common share—diluted. For the three months ended March 31, 2021, 0.5 million shares comprised of anti-dilutive stock options and restricted stock units, were excluded from the calculation of earnings per common share—diluted.