Antidilutive securities excluded from computation of (loss) income per share (in shares)

  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | September 30, |  | December 31, |
|  | 2022 |  | 2021 |
| Assets: |  |  |  |
| Fees receivable, gross (1) | $ | 1,054,640  |  |  | $ | 1,371,680  |  |
| Contract assets recorded in Prepaid expenses and other current assets (2) | $ | 23,474  |  |  | $ | 20,054  |  |
| Contract liabilities: |  |  |  |
| Deferred revenues (current liability) (3) | $ | 2,229,648  |  |  | $ | 2,238,035  |  |
| Non-current deferred revenues recorded in Other liabilities (3) | 31,049  |  |  | 48,176  |  |
| Total contract liabilities | $ | 2,260,697  |  |  | $ | 2,286,211  |  |



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| --- | --- | --- |
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(1)Fees receivable represent an unconditional right to payment from the Company’s customers and include both billed and unbilled amounts.(2)Contract assets represent recognized revenue for which the Company does not have an unconditional right to payment as of the balance sheet date because the project may be subject to a progress billing milestone or some other billing restrictions.(3)Deferred revenues represent amounts (i) for which the Company has received an upfront customer payment or (ii) that pertain to recognized fees receivable. Both situations occur before the completion of the Company’s performance obligation(s).  
The Company recognized revenue of $931.6 million and $818.4 million during the three months ended September 30, 2022 and 2021, respectively, and $1.8 billion and $1.5 billion during the nine months ended September 30, 2022 and 2021, respectively, that was attributable to deferred revenues that were recorded at the beginning of each such period. Those amounts primarily consisted of Research revenues that were recognized ratably as control of the goods or services passed to the customer during the reporting periods. During each of the three and nine months ended September 30, 2022 and 2021, the Company did not record any material impairments related to its contract assets.   
Note 5 — Computation of Earnings Per Share  
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS reflects the potential dilution of securities that could share in earnings. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be anti-dilutive.  
The table below sets forth the calculation of basic and diluted income per share for the periods indicated (in thousands, except per share data).

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Months Ended |  | Nine Months Ended |
|   |  | September 30, |  | September 30, |
|   |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Numerator: |  |   |  |   |  |   |  |   |
| Net income used for calculating basic and diluted income per share |  | $ | 173,545  |  |  | $ | 148,865  |  |  | $ | 550,985  |  |  | $ | 584,201  |  |
| Denominator: |  |   |  |   |  |   |  |   |
| Weighted average common shares used in the calculation of basic income per share  |  | 79,259  |  |  | 83,566  |  |  | 80,516 |  | 85,877 |
| Dilutive effect of outstanding awards associated with stock-based compensation plans (1) |  | 800  |  |  | 1,200  |  |  | 857 |  | 1,048 |
| Shares used in the calculation of diluted income per share  |  | 80,059  |  |  | 84,766  |  |  | 81,373 |  | 86,925 |
| Basic income per share |  | $ | 2.19  |  |  | $ | 1.78  |  |  | $ | 6.84  |  |  | $ | 6.80  |  |
| Diluted income per share  |  | $ | 2.17  |  |  | $ | 1.76  |  |  | $ | 6.77  |  |  | $ | 6.72  |  |



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(1)Certain outstanding awards associated with stock-based compensation plans were not included in the computation of diluted income per share because the effect would have been anti-dilutive. These anti-dilutive outstanding awards associated with stock-based compensation plans totaled approximately 0.1 million for both of the three and nine months ended September 30, 2022. For both of the three and nine months ended September 30, 2021, the number of anti-dilutive shares was de minimis.  
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