Earnings Per Share

3 Months Ended

Mar. 31, 2023

The company uses the two-class method to calculate basic and diluted earnings per common share because its Series G preferred stock are participating securities. Under the two-class method, undistributed earnings are allocated to common stock and participating securities according to their respective rights in undistributed earnings, as if all of the earnings for the period had been distributed. Basic earnings per common share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Net income attributable to common shareholders is reduced for preferred stock dividends earned during the period. Preferred stock also receives a proportionate allocation of undistributed or overdistributed earnings for the period because Series G preferred stock has a contractual obligation to share in profits and losses of the company. Diluted earnings per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding plus potentially dilutive common shares. Anti-dilutive stock awards were as follows for the periods presented:


	Quarter Ended March 31,
(in thousands)		2023	2022

Stock awards		160	78
Total		160	78

The following table presents the earnings per share calculation for the periods presented:


	Quarter Ended March 31,
		2023		2022
Net Income (in millions)		$	883.8	$	711.0
Less: preferred stock dividends		(5.0)		(4.6)
Less: undistributed earnings allocated to preferred stock		(6.1)		(4.4)
Net Income Attributable to Common Shareholders of CME Group		$	872.7	$	702.0

Weighted Average Number of Common Shares (in thousands):
Basic		358,933		358,609
Effect of stock options, restricted stock and performance shares		380		571
Diluted		359,313		359,180
Earnings per Common Share Attributable to Common Shareholders of CME Group:
Basic		$	2.43	$	1.96
Diluted		2.43		1.95