Net Income Per Share

6 Months Ended

Jun. 30, 2014

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 June 30,						For the six months ended June 30,
(in thousands, except per share data)	2014			2013			2014			2013
Net income	$	61,755		$	52,007		$	114,170		$	112,138
Net income attributable to unvested awarded performance stock		(1,531	)		(1,157	)		(2,915	)		(2,467	)

Net income attributable to common shares	$	60,224		$	50,850		$	111,255		$	109,671


Weighted average number of common shares outstanding – basic		144,840			144,041			145,133			143,984
Less unvested awarded performance stock included in weighted average number of common shares outstanding – basic		(3,590	)		(3,205	)		(3,705	)		(3,168	)

Weighted average number of common shares outstanding for basic earnings per common share		141,250			140,836			141,428			140,816
Dilutive effect of stock options		1,782			2,185			1,741			2,122

Weighted average number of shares outstanding – diluted		143,032			143,021			143,169			142,938

Net income per share:
Basic	$	0.43		$	0.36		$	0.79		$	0.78

Diluted	$	0.42		$	0.36		$	0.78		$	0.77

- Definition

The entire disclosure for earnings per share.

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