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STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2024
STOCKHOLDERS' EQUITY  
STOCKHOLDERS' EQUITY

(5) STOCKHOLDERS' EQUITY

 

Earnings Per Share

 

Basic earnings per share has been computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the respective period. Diluted earnings per share has been computed by dividing earnings 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,
 
2024

2023



2024



2023

Computation of diluted earnings:










   Net income 
 $
151.5
$
104.2


$
260.8


$
210.4

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

1.1



3.2



3.1

      Net income for diluted earnings per share calculation
 $
152.6
$
105.3


$
264.0


$
213.5

















Computation of diluted weighted average shares outstanding:










Basic weighted average shares outstanding
44,416,803

48,406,473



45,221,248



49,285,143

Incremental shares from assumed exercise of stock options and vesting of restricted stock units
355,985

282,312



418,479



379,331

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 
47,554,606

51,470,603



48,421,545



52,446,292


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 3.1 million and 3.1 million for the three and nine months ended September 30, 2024 and 3.6 million and 2.7 million for the three and nine months ended September 30, 2023, respectively.

The Company 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 for the Company's common stock exceeds the conversion price of $188.73 per share. See Note 10, Debt Obligations, to the consolidated financial statements for more information about the Convertible Notes.

Share repurchases

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. As of September 30, 2024, 5.9 million shares were available to be repurchased under this repurchase program. On September 11, 2024, 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 11, 2026. As of September 30, 2024, 7.0 million shares were available to be repurchased under this repurchase program. Repurchases under the programs 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 income (loss) consists entirely of foreign currency translation adjustments. The Company recorded foreign currency translation adjustments of $87.1 million and $32.1 million for the three and nine months ended September 30, 2024 and ($61.0) million and ($30.1) million for the three and nine months ended September 30, 2023, 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, 2024 and 2023.