Earnings per Common Share

6 Months Ended

Jun. 30, 2024

Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of potentially dilutive common shares. Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and share-based awards (restricted share awards, restricted stock units and performance stock units), each using the treasury stock method.

For the three and six months ended June 30, 2023, we used the if-converted method for calculating the potential dilutive effect of the conversion feature of the principal amount of our 2.0% convertible senior notes due 2023 (“2023 Convertible Notes”) on earnings per common share. The conversion feature had a dilutive impact on earnings per common share for the three and six months ended June 30, 2023, as the average market price per share of our common stock for the period exceeded the conversion price of $101.38 per share. During the three and six months ended June 30, 2024, there were no 2023 Convertible Notes outstanding.


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Numerator — basic and diluted
Net income	$	83,947	$	62,395	$	163,912	$	109,942
Denominator
Weighted average number of common shares outstanding — basic	35,221		33,359		35,099		33,331
Effect of dilutive share-based awards	513		550		531		562
Effect of dilutive stock options	111		297		186		301
Effect of dilutive convertible notes	—		1,444		—		1,372
Weighted average number of common shares outstanding — diluted	35,845		35,650		35,816		35,566
Earnings per common share — basic	$	2.38	$	1.87	$	4.67	$	3.30
Earnings per common share — diluted	$	2.34	$	1.75	$	4.58	$	3.09
Antidilutive stock options and share-based awards	40		3		32		6