Note 24—Earnings Per Share Basic earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding, assuming all dilutive securities were issued. The Company’s potentially dilutive securities are stock-based compensation awards. The Company applies the treasury stock method to determine the diluted weighted average number of shares of common stock outstanding based on the outstanding stock-based compensation awards. The following table summarizes the basic and diluted earnings per share calculations: | | | | | | | | | | | | | | | Quarter ended June 30, | | Six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in thousands, except per share amounts) | Net income | | $ | 21,726 | | $ | 136,463 | | $ | 104,048 | | $ | 212,743 | | | | | | | | | | | | | | Weighted average shares of common stock outstanding | | | 51,932 | | | 51,667 | | | 52,031 | | | 51,587 | Effect of dilutive securities - shares issuable under
stock-based compensation plan | | | 1,319 | | | 1,968 | | | 1,518 | | | 2,039 | Weighted average diluted shares of common stock outstanding | | | 53,251 | | | 53,635 | | | 53,549 | | | 53,626 | Basic earnings per share | | $ | 0.42 | | $ | 2.64 | | $ | 2.00 | | $ | 4.12 | Diluted earnings per share | | $ | 0.41 | | $ | 2.54 | | $ | 1.94 | | $ | 3.97 |
Calculations of diluted earnings per share require certain potentially dilutive shares to be excluded when their inclusion in the diluted earnings per share calculation would be anti-dilutive. The following table summarizes the weighted-average number of anti-dilutive outstanding RSUs and stock options excluded from the calculation of diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter ended June 30, | | Six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in thousands except for weighted average exercise price) | Time-based RSUs | | | 4 | | | — | | | 118 | | | 190 | Performance-based RSUs (1) | | | 452 | | | 411 | | | 390 | | | 368 | Stock options (2) | | | 496 | | | 237 | | | 407 | | | 191 | Total anti-dilutive RSUs and stock options | | | 952 | | | 648 | | | 915 | | | 749 | Weighted average exercise price of anti-dilutive stock options (2) | | $ | 95.75 | | $ | 98.21 | | $ | 97.28 | | $ | 97.36 |
| (1) | Certain performance-based RSUs were outstanding but not included in the computation of earnings per share because the performance thresholds included in such RSUs have not been achieved. |
| (2) | Certain stock options were outstanding but not included in the computation of diluted earnings per share because the combination of the weighted-average exercise prices and average unamortized stock compensation cost exceeded the average market price of the Company’s common stock for the period. |
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