Earnings per Share

6 Months Ended

Jun. 30, 2021

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of shares of common stock outstanding. For purposes of calculating basic EPS, vested restricted stock and restricted stock units (“RSUs”) are considered outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. The determination of whether components are dilutive is calculated independently for each period. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if unvested RSUs result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures result in the issuance of common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. For the quarter ended June 30, 2020 common stock equivalents of 19.1 million were not included because they were antidilutive.

Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS.


Earnings per share
Table	6.1
		Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)		2021		2020		2021		2020
Basic earnings per share:
Net income		$	153,051	$	14,047	$	303,072	$	163,852
Weighted average common shares outstanding - basic		339,326		338,593		339,116		341,323
Basic earnings per share		$	0.45	$	0.04	$	0.89	$	0.48

Diluted earnings per share:
Net income		$	153,051	$	14,047	$	303,072	$	163,852
Interest expense, net of tax (1):
9% Debentures		3,712		—		7,423		9,132
Diluted income available to common shareholders		$	156,763	$	14,047	$	310,495	$	172,984

Weighted average common shares outstanding - basic		339,326		338,593		339,116		341,323
Effect of dilutive securities:
Unvested RSUs		1,425		1,068		1,560		1,551
9% Debentures		15,785		—		15,785		19,129
Weighted average common shares outstanding - diluted		356,536		339,661		356,461		362,003
Diluted earnings per share		$	0.44	$	0.04	$	0.87	$	0.48

(1) Interest expense for the three and six months ended June 30, 2021 and 2020, respectively, has been tax effected at a rate of 21%.