Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.20.4
Earnings Per Share
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share

Note 7. 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 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:

 

 

 

Year Ended December 31,

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Weighted average shares outstanding - basic

 

 

117,737,180

 

 

 

120,414,218

 

 

 

122,885,346

 

Dilutive effect of share-based awards

 

 

756,023

 

 

 

195,381

 

 

 

144,326

 

Weighted average shares outstanding - diluted

 

 

118,493,203

 

 

 

120,609,599

 

 

 

123,029,672