Earnings Per Share

9 Months Ended

Sep. 30, 2020

Note 2. Earnings Per Share

Basic earnings per share is computed by dividing net income by the daily weighted average number of shares of our common stock outstanding for the period, excluding unvested restricted stock. Unvested restricted stock is included in common shares outstanding on our Condensed Balance Sheets.

Diluted earnings per share is computed using the treasury stock method. The denominator used in calculating diluted earnings per share includes the impact of unvested restricted stock and other dilutive, non-participating securities under our equity award agreements. The denominator excludes contingently-issuable shares under performance-based award agreements when the performance target has not yet been deemed achieved.

The following table provides a reconciliation of the number of shares of common stock used in computing basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Weighted average shares outstanding - basic		117,188,398		119,820,422		117,946,805		120,711,513
Dilutive effect of share-based awards		745,042		163,731		750,031		171,323
Weighted average shares outstanding - diluted		117,933,440		119,984,153		118,696,836		120,882,836