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Earnings Per Share Data ("EPS") and Stock Based Compensation
 3 Months Ended
Mar. 31, 2013
Earnings Per Share Data ("EPS") and Stock Based Compensation

(7) Earnings Per Share Data (“EPS”) and Stock Based Compensation

Basic earnings per share are based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are based on the weighted average number of common shares outstanding during the period adjusted to give effect to common stock equivalents.

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

 

     Three months ended
March 31,		  
     2013     2012  

Basic and Diluted:

     

Net income attributable to UHS

    $ 119,784      $ 128,607   

Less: Net income attributable to unvested restricted share grants

      (69 )      (168 ) 
  

 

 

    

 

 

  

Net income attributable to UHS – basic and diluted

    $ 119,715      $ 128,439   
  

 

 

    

 

 

  

Weighted average number of common shares—basic

      97,711        96,593   

Net effect of dilutive stock options and grants based on the treasury stock method

      860        1,198   
  

 

 

    

 

 

  

Weighted average number of common shares and equivalents—diluted

      98,571        97,791   
  

 

 

    

 

 

  

Earnings per basic share attributable to UHS:

    $ 1.23      $ 1.33   
  

 

 

    

 

 

  

Earnings per diluted share attributable to UHS:

    $ 1.21      $ 1.31   
  

 

 

    

 

 

  

The “Net effect of dilutive stock options and grants based on the treasury stock method”, for all periods presented above, excludes certain outstanding stock options applicable to each period since the effect would have been anti-dilutive. There were no anti-dilutive stock options during the three months ended March 31, 2013. The excluded weighted-average stock options totaled 2.7 million for the three months ended March 31, 2012. All classes of our common stock have the same dividend rights.

Stock-Based Compensation: During the three-month periods ended March 31, 2013 and 2012, compensation cost of $6.7 million ($4.2 million after-tax) and $4.9 million ($3.0 million after-tax), respectively, was recognized related to outstanding stock options. In addition, during the three-month periods ended March 31, 2013 and 2012, compensation cost of approximately $405,000 ($252,000 after-tax) and $577,000 ($359,000 after-tax), respectively, was recognized related to restricted stock. As of March 31, 2013 there was $58.6 million of unrecognized compensation cost related to unvested options and restricted stock which is expected to be recognized over the remaining weighted average vesting period of 3.0 years. There were 2,841,400 stock options granted (net of cancellations) during the first three months of 2013 with a weighted-average grant date fair value of $13.30 per share.