Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share:

Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts):


	Year Ended December 31,
	2020		2019		2018
Basic earnings per share
Numerator:


Net income attributable to Albemarle Corporation	$	375,764	$	533,228	$	693,562
Denominator:
Weighted-average common shares for basic earnings per share	106,402		105,949		108,427
Basic earnings per share	$	3.53	$	5.03	$	6.40
Diluted earnings per share
Numerator:


Net income attributable to Albemarle Corporation	$	375,764	$	533,228	$	693,562
Denominator:
Weighted-average common shares for basic earnings per share	106,402		105,949		108,427
Incremental shares under stock compensation plans	406		372		1,031
Weighted-average common shares for diluted earnings per share	106,808		106,321		109,458
Diluted earnings per share	$	3.52	$	5.02	$	6.34

Included in the calculation of basic earnings per share are unvested restricted stock awards that contain nonforfeitable rights to dividends. At December 31, 2020, there were 10,350 unvested shares of restricted stock awards outstanding.

We have the authority to issue 15 million shares of preferred stock in one or more classes or series. As of December 31, 2020, no shares of preferred stock have been issued.

On February 8, 2021, we completed an underwritten public offering of 8,496,773 shares of our common stock, par value $0.01 per share, at a price to the public of $153.00 per share. The Company also granted to the Underwriters an option to purchase up to an additional 1,274,509 shares for a period of 30 days, which was exercised. The total gross proceeds from this offering were approximately $1.5 billion, before deducting expenses, underwriting discounts and commissions.

In November 2016, our Board of Directors authorized an increase in the number of shares the Company is permitted to repurchase under our share repurchase program, pursuant to which the Company is now permitted to repurchase up to a maximum of 15 million shares, including those previously authorized but not yet repurchased.

Under our existing Board authorized share repurchase program, during 2018, the Company entered into two separate accelerated share repurchase (“ASR”) agreements with financial institutions. Under each ASR agreement, the Company paid $250 million from available cash on hand. Under the terms of the first ASR agreement, which was completed on September 28, 2018, the Company received and retired a total of 2,680,704 shares, calculated based on the daily Rule 10b-18 volume-weighted average prices of the Company’s common stock over the term of the ASR agreement, less an agreed discount. Under the terms of the second ASR agreement, which was completed on December 7, 2018, the company received and retired a total of 2,581,950 shares, calculated based on the daily Rule 10b-18 weighted average prices of the Company’s common stock over the terms of the ASR agreement, less an agreed discount. The Company determined that each ASR agreement met the criteria to be accounted for as a forward contract indexed to its stock and was therefore treated as an equity instrument. In total, we received and retired 5,262,654 shares under these agreements, which reduced the Company’s weighted average shares outstanding for purposes of calculating basic and diluted earnings per share for the year ended December 31, 2018.

There were no shares of the Company’s common stock repurchased during the year ended December 31, 2020 or 2019. As of December 31, 2020, there were 7,396,263 remaining shares available for repurchase under the Company’s authorized share repurchase program.