Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted EPS

The following table sets forth the allocation of net income for the three and nine months ended September 30, 2022 and 2021 under the two-class method.

	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2022		2021		2022		2021
Net income attributable to PENN Entertainment	$	123.5	$	86.1	$	201.3	$	375.8
Net income applicable to preferred stock	0.5		0.4		0.8		1.9
Net income applicable to common stock	$	123.0	$	85.7	$	200.5	$	373.9

The following table presents the calculation of basic and diluted earnings per share for the Company’s common stock for the three and nine months ended September 30, 2022 and 2021:

	For the three months ended September 30,				For the nine months ended September 30,
(in millions, except per share data)	2022		2021		2022		2021
Calculation of basic earnings per share:
Net income applicable to common stock	$	123.0	$	85.7	$	200.5	$	373.9
Weighted-average shares outstanding - PENN Entertainment	157.0		156.1		162.9		155.9
Weighted-average shares outstanding - Exchangeable Shares	0.6		—		0.6		—
Weighted-average common shares outstanding - basic	157.6		156.1		163.5		155.9
Basic earnings per share	$	0.78	$	0.55	$	1.23	$	2.40
Calculation of diluted earnings per share:
Net income applicable to common stock	$	123.0	$	85.7	$	200.5	$	373.9
Interest expense, net of tax (1):
Convertible Notes	1.8		4.4		5.4		13.0
Diluted income applicable to common stock	$	124.8	$	90.1	$	205.9	$	386.9
Weighted-average common shares outstanding - diluted	173.0		172.7		179.0		172.7
Diluted earnings per share	$	0.72	$	0.52	$	1.15	$	2.24

(1)The three and nine months ended September 30, 2022 were tax-affected at a rate of 21%. The three and nine months ended September 30, 2021, were tax-affected at a rate of 20%.

Schedule of Reconciliation of the Weighted-average Common Shares Outstanding

The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the three and nine months ended September 30, 2022 and 2021:

	For the three months ended September 30,		For the nine months ended September 30,
(in millions)	2022	2021	2022	2021
Weighted-average common shares outstanding	157.6	156.1	163.5	155.9
Assumed conversion of:
Dilutive stock options	1.0	2.1	1.2	2.3
Dilutive restricted stock	0.3	0.4	0.2	0.4
Convertible debt	14.1	14.1	14.1	14.1
Weighted-average common shares outstanding - Diluted	173.0	172.7	179.0	172.7