NET INCOME PER SHARE

A reconciliation of the shares used in the computation of basic and diluted net income per share is as follows:



	Three Months Ended March 31,
(SHARES IN THOUSANDS)	2019		2018
Net Income
Net income attributable to IFF stockholders	$	108,829	$	129,416
Add: Decrease in redemption value of redeemable noncontrolling interests in excess of earnings allocated	370		—
Net income available to IFF stockholders	$	109,199	$	129,416
Shares
Weighted average common shares outstanding (basic)⁽¹⁾	111,864		79,018
Adjustment for assumed dilution⁽²⁾:
Stock options and restricted stock awards	362		375
SPC portion of TEUs	1,163		—
Weighted average shares assuming dilution (diluted)	113,389		79,393

Net Income per Share
Net income per share - basic	$	0.97	$	1.63
Net income per share - dilutive	0.96		1.63

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(1)	For the three months ended March 31, 2019, the tangible equity units (“TEUs”) were assumed to be outstanding at the minimum settlement amount for weighted-average shares for basic earnings per share. See below for details.


(2)	Effect of dilutive securities includes dilution under stock plans and incremental impact of TEUs. See below for details.

The Company declared a quarterly dividend to its shareholders of $0.73 and $0.69 for the three months ended March 31, 2019 and 2018, respectively.

There were no stock options or stock-settled appreciation rights (“SSARs”) excluded from the computation of diluted net income per share for the three months ended March 31, 2019 and 2018.

The Company issued 16,500,000 TEUs, consisting of a prepaid stock purchase contract ("SPC") and a senior amortizing note, for net proceeds of approximately $800.2 million on September 17, 2018. For the periods outstanding, the SPC portion of the TEUs was assumed to be settled at the minimum settlement amount of 0.3134 shares per SPC for weighted-average shares for basic earnings per share. For diluted earnings per share, the shares were assumed to be settled at a conversion factor based on the 20 day volume-weighted average price (“VWAP”) per share of the Company’s common stock not to exceed 0.3839 shares per SPC.

The Company has issued shares of purchased restricted common stock and purchased restricted common stock units (collectively “PRSUs”) which contain rights to nonforfeitable dividends while these shares are outstanding and thus are considered participating securities. Such securities are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method. The Company did not present the two-class method since the difference between basic and diluted net income per share for both unrestricted common shareholders and PRSU shareholders was less than $0.01 per share for each period presented, and the number of PRSUs outstanding as of March 31, 2019 and 2018 was immaterial. Net income allocated to such PRSUs was $0.1 million for the three months ended March 31, 2019 and $0.3 million for the three months ended March 31, 2018.