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STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2023
STOCKHOLDERS' EQUITY  
STOCKHOLDERS' EQUITY

(5) STOCKHOLDERS' EQUITY

 

Earnings (Loss) Per Share

 

Basic earnings (loss) per share has been computed by dividing earnings (loss) available to common stockholders by the weighted average number of common shares outstanding during the respective period. Diluted earnings (loss) per share has been computed by dividing earnings (loss) available to common stockholders by the weighted average shares outstanding during the respective period, after adjusting for the potential dilution of options to purchase the Company’s common stock, assumed vesting of restricted stock units and the assumed conversion of the Company’s convertible debt, if such conversion would be dilutive.

 

The following table provides the computation of diluted earnings and diluted weighted average number of common shares outstanding:
 
 (in millions) Three Months Ended
September 30,


Nine Months Ended
September 30,
 
2023

2022



2023



2022
Computation of diluted earnings:









   Net income 
 $
104.2
$
97.8


$
210.4


$
163.3
   Add: Interest expense from assumed conversion of convertible notes, net of tax
1.1

1.1



3.1



3.3
      Net income for diluted earnings per share calculation
 $
105.3
$
98.9


$
213.5


$
166.6
















Computation of diluted weighted average shares outstanding:









Basic weighted average shares outstanding
48,406,473

49,583,317



49,285,143



50,345,293
Incremental shares from assumed exercise of stock options and vesting of restricted stock units
282,312

386,169



379,331



561,689
Incremental shares from assumed conversion of convertible debt
 2,781,818

2,781,818



2,781,818



2,781,818
Diluted weighted average shares outstanding 
51,470,603

52,751,304



52,446,292



53,688,800

The table includes all stock options and restricted stock units that are dilutive to the Company's weighted average common shares outstanding during the period. The calculation of diluted earnings per share excludes stock options or shares of restricted stock units that are anti-dilutive to the Company's weighted average common shares outstanding of approximately 3.6 million and 2.7 million for the three and nine months ended September 30, 2023 and 3.3 million and 2.8 million for the three and nine months ended September 30, 2022, respectively.

Euronet issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019. The Convertible Notes currently have a settlement feature requiring us upon conversion to settle the principal amount of the debt and any conversion value in excess of the principal value ("conversion premium"), for cash or shares of Euronet's common stock or a combination thereof, at the Company's option. The Company has stated its intent to settle any conversion of these notes by paying cash for the principal value and issuing common stock for any conversion premium; however, after adopting ASU 2020-06, 2.8 million incremental shares assumed for conversion of convertible notes is required to be included in the dilutive earnings per share calculation, if dilutive, regardless of whether the market price trigger has been met. Therefore, the Convertible Notes were included in the calculation of diluted earnings per share if their inclusion was dilutive. The dilutive effect increases the more the market price exceeds the conversion price of $188.73 per share. See Note 9, Debt Obligations, to the consolidated financial statements for more information about the Convertible Notes.

Share repurchases

On December 8, 2021, the Company put a repurchase program in place to repurchase up to $300 million in value, but not more than 5.0 million shares of common stock through December 8, 2023. On September 13, 2022, the Company put a repurchase program in place to repurchase up to $350 million in value, but not more than 7.0 million shares of common stock through September 13, 2024. On September 13, 2023, the Company put a repurchase program in place to repurchase up to $350 million in value, but not more than 7.0 million shares of common stock through September 13, 2025. Under the repurchase programs, we repurchased $296.1 million and $324.5 million of stock, for the three and nine months ended September 30, 2023 and we repurchased $175.0 million of stock for the nine months ended September 30, 2022. We did not repurchase any stock during the three months ended September 30, 2022. Repurchases under the current program may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan.


Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consists entirely of foreign currency translation adjustments. The Company recorded foreign currency translation adjustments of ($61.0) million and ($30.1) million for the three and nine months ended September 30, 2023 and ($100.5) million and ($209.9) million for the three and nine months ended September 30, 2022, respectively. There were no reclassifications of foreign currency translation adjustments into the consolidated statements of income for the three and nine months ended September 30, 2023 and 2022.