Earnings per Share

12 Months Ended

Dec. 31, 2022

Earnings per ShareFor 2022, 2021 and 2020, Class B ordinary shares contingently issuable to EPA Holdings were evaluated and were determined not to have any dilutive impact. Additionally, Class B ordinary shares in issue were evaluated under the if-converted method for potential dilutive effects and were determined to be anti-dilutive for 2022, 2021 and 2020, and therefore were excluded from the computation of diluted earnings per shares of Class A ordinary share.

The following tables set forth reconciliations of the numerators and denominators used to calculate basic and diluted earnings per Class A ordinary share for 2022, 2021 and 2020 (in thousands, except per share amounts):


	Years Ended December 31,
	2022		2021
Numerator
Consolidated net income	$	230,064	$	1,241,201
Less: Net income attributable to Continuing Investors Partnerships	23,775		297,321
Less: Net income attributable to Legacy Investors Partnerships and RPSFT	163,457		324,152


Net income attributable to Royalty Pharma plc - basic and diluted	$	42,832	$	619,728

Denominator
Weighted average Class A ordinary shares outstanding - basic	437,963		414,794


Add: Dilutive effect of unvested RSUs	9		8
Weighted average Class A ordinary shares outstanding - diluted	437,972		414,802

Earnings per Class A ordinary share - basic	$	0.10	$	1.49
Earnings per Class A ordinary share - diluted	$	0.10	$	1.49

Prior to the IPO, our capital structure mainly included unitholder interests. We analyzed the calculation of earnings per interest for periods prior to the IPO and determined that the resultant values would not be meaningful to the users of these consolidated financial statements. Therefore, the basic and diluted earnings per share for 2020 are only applicable for the period from June 16, 2020 to December 31, 2020, which represents the period in which we had outstanding Class A ordinary shares.


	Year Ended December 31,
	2020
Numerator
Consolidated net income	$	1,701,954
Less: Net income attributable to Continuing Investors Partnerships prior to the IPO (1)	479,842
Less: Net income attributable to Continuing Investors Partnerships subsequent to the IPO	316,993
Less: Net income attributable to Legacy Investors Partnerships and RPSFT	409,921
Net income attributable to Royalty Pharma plc - basic and diluted	$	495,198

Denominator
Weighted average Class A ordinary shares outstanding - basic	375,444
Add: Dilutive effect of unvested RSUs	11
Weighted average Class A ordinary shares outstanding - diluted	375,455

Earnings per Class A ordinary share - basic	$	1.32
Earnings per Class A ordinary share - diluted	$	1.32

(1)Reflected as Net income attributable to Royalty Pharma plc on the consolidated statements of operations.