Earnings per Share & Stock Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Earnings per Share & Stock CompensationThe Company granted approximately 81 thousand restricted stock units (RSUs) to employees during the nine months ended September 30, 2020. Approximately 70 thousand and 11 thousand of these RSUs were granted during the first and second quarter of 2020, respectively, at market prices of $48.47 and $52.70 in those respective quarters. The Company also granted approximately 14 thousand RSUs to members of the board of directors at a market price of $48.47 per award in the first quarter of 2020. Additionally, approximately 40 thousand Relative Total Shareholder Return (“RTSR”) awards were granted to employees at a value of $56.32 per award in the first quarter of 2020. Under the terms of the award agreements, the RSUs granted to employees vest over the anniversary date of the grants through 2024. The RSUs granted to the members of the board of directors vest fully on the first anniversary of the grant date. Pursuant to the terms of the RTSR awards, the Company’s stock performance over a three-year period, ending December 31, 2022, will be compared to a group of peer companies, and the actual number of shares to be issued will be determined based upon the performance of the Company’s stock as compared with that of the peer group. The actual number of shares to be issued ranges from zero shares (if the Company’s stock performance is in the bottom 25% of the peer group) to 150% of the awards granted (if the Company’s stock performance is in the top 25% of the peer group). The Company's stock-based compensation award vesting is subject to requirements relating to continued

employment with the Company through the service or performance periods, and to special vesting provisions in case of a change of control, death, disability or retirement.

We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30, 2020
(in thousands, except per share amounts)	2020		2019		2020		2019
Calculation of net income per share:
Income from continuing operations	$	1,412	$	1,168	$	1,026	$	3,284
Income from discontinued operations, net of tax	$	33,509	$	13,186	$	76,422	$	38,130
Net income	$	34,921	$	14,354	$	77,448	$	41,414

Basic weighted average shares outstanding	49,911		49,857		49,889		49,827
Basic net income per share - continuing operations	$	0.03	$	0.02	$	0.02	$	0.07
Basic net income per share - discontinued operations	$	0.67	$	0.27	$	1.53	$	0.76
Basic net income per share	$	0.70	$	0.29	$	1.55	$	0.83

Effect of stock-based compensation awards outstanding:
Basic weighted average shares outstanding	49,911		49,857		49,889		49,827
Effect from dilutive shares and options outstanding	194		272		160		283
Diluted weighted average shares outstanding	50,105		50,129		50,049		50,110
Diluted net income per share - continuing operations	0.03		0.02		0.02		0.07
Diluted net income per share - discontinued operations	0.67		0.27		1.53		0.76
Diluted net income per share	$	0.70	$	0.29	$	1.55	$	0.83

There were fewer than 110,000 anti-dilutive awards outstanding during the three and nine months ended 2020 and 2019.