Net income per share

9 Months Ended

Sep. 30, 2023

Basic earnings per share for the Company’s common stock is computed by dividing, net income for the period by the weighted average number of common shares outstanding during the period.

In August, 2018, the Company issued an aggregate principal amount of $880 million of 2.00% Convertible Senior Notes due 2028 (“2028 Notes”). The conversion of these notes is included in the calculation for diluted earnings per share utilizing the “if converted” method. Accordingly, conversion of these Notes is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive.

The denominator for diluted net income per share for the nine and three-month periods ended September 30, 2022 did not include any effect from the capped call transactions entered into by the Company with certain financial institutions with respect to shares of the Company’s common stock (“2028 Notes Capped Call Transactions”), which were settled on September 1, 2023, because it would be antidilutive. See Note 12 to these unaudited interim condensed consolidated financial statements and Note 17 to the financial statements for the year ended December 31, 2022, contained in the Company’s 2022 10-K for more details regarding the 2028 Notes and the 2028 Notes Capped Call Transactions.

Net income per share of common stock is as follows for the nine and three-month periods ended September 30, 2023 and 2022:


	Nine Months Ended September 30,								Three Months Ended September 30,
	2023				2022				2023				2022
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income per common share (*)	$	16.40	$	16.36	$	6.30	$	6.29	$	7.18	$	7.16	$	2.57	$	2.56

Numerator (in millions):
Net income	$	822	$	822	$	317	$	317	$	359	$	359	$	129	$	129
Effect of dilutive 2028 Notes	—		1		—		6		—		—		—		2
Net income available to common stock	$	822	$	823	$	317	$	323	$	359	$	359	$	129	$	131

Denominator:
Weighted average of common stock outstanding for earnings per share	50,137,826		50,137,826		50,365,813		50,365,813		50,008,320		50,008,320		50,325,075		50,325,075
Adjustment for assumed conversions	—		201,119		—		990,268		—		201,119		—		990,268
Adjusted weighted average of common stock outstanding for earnings per share	50,137,826		50,338,945		50,365,813		51,356,081		50,008,320		50,209,439		50,325,075		51,315,343

(*) Figures have been calculated using non-rounded amounts.