Earnings Per Share

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings per Share, which requires that non-vested restricted stock containing non-forfeitable dividend rights should be treated as participating securities pursuant to the two-class method. Under the two-class method, net income is reduced by the amount of dividends declared in the period for common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. The amounts of distributed and undistributed earnings allocated to participating securities for the years ended December 31, 2023, 2022 and 2021 were insignificant and did not materially impact the calculation of basic or diluted EPS.

Basic EPS is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding for the year.

Diluted EPS is computed using the weighted average number of shares of common stock and non-vested restricted stock awards outstanding for the year, plus the effect of dilutive potential common shares outstanding during the year. The dilutive effect of common stock equivalents is determined using the more dilutive of the two-class method or alternative methods. We use the treasury stock method to determine the potentially dilutive impact of our employee stock options and restricted stock units, and the contingently issuable method for our performance-based restricted stock unit awards.

For the years ended December 31, 2023, 2022 and 2021, options to purchase 0.1 million, 0.3 million and 0.2 million shares of the Company’s common stock, respectively, had an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation of diluted EPS.

The following table reconciles net income to basic and diluted EPS:


	For the Years Ended December 31,
(in millions, except per share data)	2023		2022		2021


Net income	$	157.4	$	120.4	$	100.6

Weighted average shares outstanding — Basic	60.7		60.5		60.8
Dilutive effect of common stock equivalents	0.8		0.7		1.1
Weighted average shares outstanding — Diluted	61.5		61.2		61.9

Earnings per share:
Basic	$	2.59	$	1.99	$	1.65
Diluted	2.56		1.97		1.63