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Net Income Per Share
 3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Net Income Per Share

NOTE 3· Net Income Per Share

Effective in 2009, the Company adopted new Financial Accounting Standards Board (“FASB”) authoritative guidance that states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share (“EPS”) pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Performance stock shares granted to employees under the Company’s Performance Stock Plan and under the Company’s Stock Incentive Plan are considered participating securities as they receive non-forfeitable dividend equivalents at the same rate as common stock.

Basic EPS is computed based on the weighted average number of common shares (including participating securities) issued and outstanding during the period. Diluted EPS is computed based on the weighted average number of common shares issued and outstanding plus equivalent shares, assuming the exercise of stock options. The dilutive effect of stock options is computed by application of the treasury-stock method. The following is a reconciliation between basic and diluted weighted average shares outstanding:

 

     For the three months
ended March 31,		  
(in thousands, except per share data)    2014     2013  

Net income

    $ 52,415      $ 60,131   

Net income attributable to unvested awarded performance stock

      (1,376 )      (1,308 ) 
  

 

 

    

 

 

  

Net income attributable to common shares

    $ 51,039      $ 58,823   
  

 

 

    

 

 

  

Weighted average number of common shares outstanding – basic

      145,429        143,926   

Less unvested awarded performance stock included in weighted average number of common shares outstanding – basic

      (3,819 )      (3,130 ) 
  

 

 

    

 

 

  

Weighted average number of common shares outstanding for basic earnings per common share

      141,610        140,796   

Dilutive effect of stock options

      1,699        2,151   
  

 

 

    

 

 

  

Weighted average number of shares outstanding – diluted

      143,309        142,947   
  

 

 

    

 

 

  

Net income per share:

     

Basic

    $ 0.36      $ 0.42   
  

 

 

    

 

 

  

Diluted

    $ 0.36      $ 0.41