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%.
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