Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Diluted Loss Per Share

Stock options, restricted stock, convertible preferred shares and convertible debt that could potentially dilute basic EPS in the future that were not included in the computation of diluted loss per share were as follows:

	For the three months ended September 30,	For the nine months ended September 30,
(in millions)	2023
Assumed conversion of dilutive stock options	0.5	0.7
Assumed conversion of dilutive restricted stock	0.4	0.4
Assumed conversion of convertible preferred shares	0.2	0.3
Assumed conversion of convertible debt	14.1	14.1

Schedule of Calculation of Basic and Diluted EPS

The following table sets forth the allocation of net income (loss) for the three and nine months ended September 30, 2023 and 2022 under the two-class method.

	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2023		2022		2023		2022
Net income (loss) attributable to PENN Entertainment	$	(724.8)	$	123.5	$	(131.9)	$	201.3
Net income applicable to preferred stock	—		0.5		—		0.8
Net income (loss) applicable to common stock	$	(724.8)	$	123.0	$	(131.9)	$	200.5

The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the three and nine months ended September 30, 2023 and 2022:

	For the three months ended September 30,				For the nine months ended September 30,
(in millions, except per share data)	2023		2022		2023		2022
Calculation of basic earnings (loss) per share:
Net income (loss) applicable to common stock	$	(724.8)	$	123.0	$	(131.9)	$	200.5
Weighted-average shares outstanding — PENN Entertainment	150.3		157.0		151.7		162.9
Weighted-average shares outstanding — Exchangeable Shares	0.6		0.6		0.6		0.6
Weighted-average common shares outstanding — basic	150.9		157.6		152.3		163.5
Basic earnings (loss) per share	$	(4.80)	$	0.78	$	(0.87)	$	1.23
Calculation of diluted earnings (loss) per share:
Net income (loss) applicable to common stock	$	(724.8)	$	123.0	$	(131.9)	$	200.5
Interest expense, net of tax (1):
Convertible Notes	—		1.8		—		5.4
Diluted income (loss) applicable to common stock	$	(724.8)	$	124.8	$	(131.9)	$	205.9
Weighted-average common shares outstanding — diluted	150.9		173.0		152.3		179.0
Diluted earnings (loss) per share	$	(4.80)	$	0.72	$	(0.87)	$	1.15

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

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, 2023 and 2022:

	For the three months ended September 30,		For the nine months ended September 30,
(in millions)	2023	2022	2023	2022
Weighted-average common shares outstanding — basic	150.9	157.6	152.3	163.5
Assumed conversion of:
Dilutive stock options	—	1.0	—	1.2
Dilutive restricted stock	—	0.3	—	0.2
Convertible debt	—	14.1	—	14.1
Weighted-average common shares outstanding — diluted	150.9	173.0	152.3	179.0