Earnings per Common Share

3 Months Ended

Mar. 31, 2023

Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of potentially dilutive common shares. Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and share-based awards (restricted share awards, restricted stock units and performance stock units), each using the treasury stock method.

We use the if-converted method for calculating the potential dilutive effect of the conversion feature of the principal amount of our 2.0% convertible senior notes due 2023 (“2023 Convertible Notes”) on earnings per common share. The conversion feature had a dilutive impact on earnings per common share for the three months ended March 31, 2023 and 2022, as the average market price per share of our common stock for the periods exceeded the conversion price of $101.38 per share. See Note 8, “Debt” for additional information about the 2023 Convertible Notes.


	Three Months Ended March 31,
	2023		2022
Numerator — basic and diluted
Net income	$	47,547	$	59,321
Denominator
Weighted average number of common shares outstanding — basic	33,301		33,619
Effect of dilutive share-based awards	576		691
Effect of dilutive stock options	305		338
Effect of dilutive convertible notes	1,300		998
Weighted average number of common shares outstanding — diluted	35,482		35,646
Earnings per common share — basic	$	1.43	$	1.76
Earnings per common share — diluted	$	1.34	$	1.66
Antidilutive stock options and share-based awards	8		6