Earnings Per Share

Unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Company’s nonvested restricted stock is considered a participating security since the share-based awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest.



(in thousands except per common share data)	Three months ended June 30,				Six months ended June 30,
(in thousands except per common share data)	2012		2011		2012		2011
Net income attributable to The Andersons, Inc.	$	29,199	$	45,218	$	47,606	$	62,484
Less: Distributed and undistributed earnings allocated to nonvested restricted stock	146		205		179		235
Earnings available to common shareholders	$	29,053	$	45,013	$	47,427	$	62,249
Earnings per share – basic:
Weighted average shares outstanding – basic	18,541		18,485		18,522		18,469
Earnings per common share – basic	$	1.57	$	2.44	$	2.56	$	3.37
Earnings per share – diluted:
Weighted average shares outstanding – basic	18,541		18,485		18,522		18,469
Effect of dilutive awards	132		134		166		168
Weighted average shares outstanding – diluted	18,673		18,619		18,688		18,637
Earnings per common share – diluted	$	1.56	$	2.42	$	2.54	$	3.34

There were no antidilutive stock-based awards outstanding at June 30, 2012 or 2011.