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Earnings per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
Basic earnings per share (“EPS”) is calculated by dividing net income attributable to us by the weighted average number of Class A ordinary shares outstanding during the period. Diluted EPS is calculated by dividing net income attributable to us, including the impact of potentially dilutive securities, by the weighted average number of Class A ordinary shares outstanding during the period, including the number of Class A ordinary shares that would have been outstanding if the potentially dilutive securities had been issued. Our Class B ordinary shares, Class R redeemable shares and deferred shares do not share in the earnings or losses attributable to us and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share for Class B ordinary shares, Class R redeemable shares and deferred shares under the two-class method has not been presented.

Our outstanding Class B ordinary shares are, however, considered potentially dilutive shares of Class A ordinary shares because Class B ordinary shares, together with the related RP Holdings Class B Interests, are exchangeable into Class A ordinary shares on a one-for-one basis. Potentially dilutive securities also include Class B ordinary shares contingently issuable to EPA Holdings related to Equity Performance Awards and unvested RSUs issued under our 2020 Independent Director Equity Incentive Plan. We use the “if-converted” method to determine the potentially dilutive effect of our outstanding Class B ordinary shares, and the treasury stock method to determine the potentially dilutive effect of the unvested RSUs. For the three and six months ended June 30, 2022 and 2021, Class B ordinary shares contingently issuable to EPA Holdings were evaluated and were determined not to have any dilutive impact.

The following table sets forth reconciliations of the numerators and denominators used to calculate basic and diluted earnings per Class A ordinary share for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts):
For the Three Months Ended June 30,For the Six Months Ended June 30,
2022202120222021
Numerator
Consolidated net income$491,597 $806,755 $619,680 $965,734 
Less: Net income attributable to Continuing Investors Partnerships119,224 212,961 139,886 251,506 
Less: Net income attributable to Legacy Investors Partnerships and RPSFT67,869 153,018 123,529 204,333 
Net income attributable to Royalty Pharma plc - basic304,504 440,776 356,265 509,895 
Add: Reallocation of net income attributable to non-controlling interest from the assumed conversion of Class B ordinary shares 119,224 212,961 139,886 251,506 
Net income attributable to Royalty Pharma plc - diluted$423,728 $653,737 $496,151 $761,401 
Denominator
Weighted average Class A ordinary shares outstanding - basic436,318 409,344 435,144 399,606 
Add: Dilutive effects as shown separately below
Class B ordinary shares exchangeable for Class A ordinary shares170,864 197,773 172,035 207,508 
Unvested RSUs32 46 28 37 
Weighted average Class A ordinary shares outstanding - diluted607,214 607,163 607,207 607,151 
Earnings per Class A ordinary share - basic$0.70 $1.08 $0.82 $1.28 
Earnings per Class A ordinary share - diluted$0.70 $1.08 $0.82 $1.25