Table of Contents Core Logic, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2020, 2019 and 2018 Earnings Per Share Dividends Share Repurchase Program Tax Escrow Disbursement Arrangements 62 We administer tax escrow disbursements as a service to our clients in connection with our tax services business. These deposits are maintained in segregated accounts for the benefit of our clients. These deposits totaled approximately $0.5 billion and $1.4 billion at December 31, 2020 and 2019, respectively. Because these deposits are held on behalf of our clients, they are not our funds and, therefore, are not included in the accompanying consolidated balance sheets. In July 2020, our Board of Directors cancelled all prior repurchase authorizations and established a new share repurchase authorization of up to $1.0 billion. During the years ended December 31, 2020, 2019, and 2018, we repurchased approximately 6.8 million, 2.0 million, and 2.3 million shares of our common stock for $509.3 million, $86.7 million, and $109.1 million, respectively, including commission costs. To reflect share repurchases in the consolidated balance sheet, we reduce common stock for the par value of the shares and reduce paid-in capital for the amount in excess of par to zero during the quarter in which the shares are repurchased. Any residual amount once paid-in capital has been reduced down to zero, if any, is recorded to retained earnings. As of December 31, 2020, we had $500.0 million in value of shares available to be repurchased under the plan. In April 2020, our Board of Directors declared a cash dividend of $0.22 per common share to shareholders of record as of the close of business on June 1, 2020, which was paid on June 15, 2020. In July 2020, our Board of Directors announced a 50% increase in our cash dividend and declared a $0.33 per share cash dividend to common stockholders, which was paid in September 2020 and December 2020 to stockholders of record as of the close of business on September 1, 2020 and December 1, 2020, respectively. As a result, we have recorded and additional $0.3 million in dividend equivalents reflected in additional paid-in-capital as of December 31, 2020. In December 2019, we announced that our Board of Directors initiated and declared a cash dividend of $0.22 per common share. As a result, as of December 31, 2019, we have recorded a liability of $17.4 million within accounts payable and other accrued expenses, as well as $0.4 million in dividend equivalents reflected in additional paid-in-capital within our accompanying consolidated balance sheets. The dividend declared was paid in January 2020 to shareholders of record as of the close of business on January 10, 2020. We record cash dividends as reductions to retained earnings upon declaration, with a corresponding increase to current liabilities, based on common shares outstanding on the record date. In addition, as part of our share-based compensation program, the terms of our RSUs and PBRSUs stipulate that holders of these awards are credited with dividend equivalent units on each date that a cash dividend is paid to holders of our common stock. These dividend equivalents are subject to the same vesting and performance requirements of the underlying units and therefore are forfeitable (i.e. non-participating). Upon declaration of a dividend, we record dividend equivalents as a reduction to retained earnings, derived from the number of eligible unvested shares, with a corresponding increase to additional paid-in-capital. Basic earnings per share is computed by dividing net income available to our stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted- average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if dilutive stock options had been exercised and RSUs and PBRSUs were vested. The dilutive effect of stock options and unvested RSUs and PBRSUs is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options and vesting of RSUs and PBRSUs would be used to purchase shares of common stock at the average market price for the period. The assumed proceeds include any purchase price the grantee pays, the hypothetical windfall tax benefit that we receive upon assumed exercise or vesting and the hypothetical average unrecognized compensation expense for the period. We calculate the assumed proceeds from excess tax benefits based on the “as-if” deferred tax assets calculated under share-based compensation standards.