Stock Repurchases, Dividends and Earnings per Share

3 Months Ended

Mar. 31, 2020

Stock Repurchases, Dividends and Earnings per Share

STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE

Available Shares

We currently have approximately 12.3 million shares of common stock reserved for future grants under the Republic Services, Inc. Amended and Restated 2007 Stock Incentive Plan.

Stock Repurchases

Stock repurchase activity during the three months ended March 31, 2020 and 2019 follows (in millions, except per share amounts):


	Three Months Ended March 31,
	2020		2019
Number of shares repurchased	1.2		1.5
Amount paid	$	98.8	$	111.5
Weighted average cost per share	$	85.06	$	74.76

As of March 31, 2020 and 2019, no repurchased shares were pending settlement.

In October 2017, our Board of Directors added $2.0 billion to the existing share repurchase authorization that now extends through December 31, 2020. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The share repurchase program may be extended, suspended or discontinued at any time. As of March 31, 2020, the remaining authorized purchase capacity under our October 2017 repurchase program was $605.8 million.

Dividends

In February 2020, our Board of Directors approved a quarterly dividend of $0.405 per share. Cash dividends declared were $128.9 million for the three months ended March 31, 2020. As of March 31, 2020, we recorded a quarterly dividend payable of $128.9 million to shareholders of record at the close of business on April 1, 2020.

Earnings per Share

Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued RSUs and PSUs) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the assumed exercise of employee stock options, unvested RSUs and unvested PSUs at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share.

Earnings per share for the three months ended March 31, 2020 and 2019 are calculated as follows (in thousands, except per share amounts):


	Three Months Ended March 31,
	2020		2019
Basic earnings per share:
Net income attributable to Republic Services, Inc.	$	246,300	$	234,200
Weighted average common shares outstanding	319,577		322,282
Basic earnings per share	$	0.77	$	0.73
Diluted earnings per share:
Net income attributable to Republic Services, Inc.	$	246,300	$	234,200
Weighted average common shares outstanding	319,577		322,282
Effect of dilutive securities:
Options to purchase common stock	92		504
Unvested RSU awards	217		227
Unvested PSU awards	345		437
Weighted average common and common equivalent shares outstanding	320,231		323,450
Diluted earnings per share	$	0.77	$	0.72

During the three months ended March 31, 2020, there were 0.1 million antidilutive securities outstanding. During the three months ended March 31, 2019, there were no antidilutive securities outstanding.