Net Income Per Common Share

3 Months Ended

Mar. 31, 2024

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Weighted average common shares outstanding for the basic net income per common share calculation includes certain vested restricted stock units (RSUs) and performance stock units (PSUs) as there are no conditions under which those shares will not be issued. Diluted net income per common share is computed by dividing net income by the combination of the weighted average number of common shares outstanding during the period and other potentially dilutive weighted average common shares. Other potentially dilutive weighted average common shares include the dilutive effect of RSUs and PSUs for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share and the amount of compensation expense, if any, for future service that has not yet been recognized are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted net income per common share:


	Three Months Ended March 31
	2024		2023
	(thousands, except per-share data)
Net income	$	104,124	$	96,733
Weighted average common shares outstanding during the period (for basic calculation)	39,608		39,593
Dilutive effect of other potential common shares	348		245
Weighted average common shares and potential common shares (for diluted calculation)	39,956		39,838

Net income per common share - Basic	$	2.63	$	2.44
Net income per common share - Diluted	$	2.61	$	2.43

The computation of the dilutive effect of other potential common shares excludes stock awards representing an insignificant number of shares of common stock in both the three months ended March 31, 2024 and 2023. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.