EARNINGS PER COMMON SHARE

6 Months Ended

Mar. 31, 2024

NOTE 9 EARNINGS PER COMMON SHARE

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented.

Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options, non-vested restricted stock and performance units.

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities.

During the second quarter of fiscal year 2023, Income from discontinued operations was presented as a separate line item on our Unaudited Condensed Consolidated Statements of Operations. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations, which were not material, to Other within Other income (expense) on our Unaudited Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2023. To conform with the current fiscal year presentation, basic and diluted earnings per share for continuing and discontinued operations are presented in the aggregate, for the three and six months ended March 31, 2023, as presented below.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands, except per share amounts)	2024		2023		2024		2023
Numerator:
Net income	$	84,831	$	164,040	$	180,004	261,185

Adjustment for basic earnings per share
Earnings allocated to unvested shareholders	(1,242)		(2,237)		(2,489)		(3,511)
Numerator for basic earnings per share	83,589		161,803		177,515		257,674

Adjustment for diluted earnings per share
Effect of reallocating undistributed earnings of unvested shareholders	2		6		3		6
Numerator for diluted earnings per share	$	83,591	$	161,809	$	177,518	$	257,680

Denominator:
Denominator for basic earnings per share - weighted-average shares	98,774		103,968		98,960		104,615
Effect of dilutive shares from restricted stock and performance share units	272		395		256		388
Denominator for diluted earnings per share - adjusted weighted-average shares	99,046		104,363		99,216		105,003

Basic earnings per common share:	$	0.85	$	1.55	$	1.79	$	2.46

Diluted earnings per common share:	$	0.84	$	1.55	$	1.79	$	2.46

The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands, except per share amounts)	2024		2023		2024		2023
Potentially dilutive shares excluded as anti-dilutive	2,684		2,426		2,388		2,516
Weighted-average price per share	$	57.93	$	62.03	$	60.63	$	61.74