Note 16. Equity

The following table provides a summary of changes to accumulated other comprehensive income by component for the year ended December 31, 2014.

Changes in Accumulated Other Comprehensive Income by Component


Year Ended December 31, 2014 (In Thousands)	Net unrealized gains on available-for-sale securities			Net unrealized losses on interest rate agreements accounted for as cash flow hedges
Balance at beginning of period	$	164,654		$	(15,888	)
Other comprehensive income (loss) before reclassifications		32,635			(30,325	)
Amounts reclassified from other accumulated comprehensive income		(10,552	)		164

Net current-period other comprehensive income (loss)		22,083			(30,161	)

Balance at End of Period	$	186,737		$	(46,049	)

The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2014 and 2013.

Reclassifications Out of Accumulated Other Comprehensive Income


	Affected Line Item in the Income Statement	Amount Reclassified From Accumulated Other Comprehensive Income Years Ended December 31,
(In Thousands)	Affected Line Item in the Income Statement	2014			2013
Net realized gains (losses) on AFS securities
Other than temporary impairment	Other market valuations, net	$	565		$	499
Gain on sale of AFS securities	Realized gains, net		(11,117	)		19,509

		$	(10,552	)	$	20,008

Net realized gains on interest rate agreements designated as cash flow hedges
Amortization of deferred loss	Interest expense	$	164		$	(281	)

		$	164		$	(281	)

Earnings Per Common Share

The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2014, 2013, and 2012.

Basic and Diluted Earnings Per Common Share


	Years Ended December 31,
(In Thousands, Except Share Data)	2014			2013			2012
Basic Earnings Per Common Share:
Net income attributable to Redwood	$	100,569		$	173,246		$	131,769
Less: Dividends and undistributed earnings allocated to participating securities		(2,612	)		(4,899	)		(3,886	)

Net income allocated to common shareholders	$	97,957		$	168,347		$	127,883

Basic weighted average common shares outstanding		82,837,369			81,985,897			79,529,950
Basic Earnings Per Common Share	$	1.18		$	2.05		$	1.61
Diluted Earnings Per Common Share:
Net income attributable to Redwood	$	100,569		$	173,246		$	131,769
Less: Dividends and undistributed earnings allocated to participating securities		(2,524	)		(3,726	)		(3,212	)
Add back: Interest expense on convertible notes		—			12,641			—

Net income allocated to common shareholders	$	98,045		$	182,161		$	128,557

Weighted average common shares outstanding		82,837,369			81,985,897			79,529,950
Net effect of dilutive equity awards		2,261,210			1,957,081			1,143,732
Net effect of assumed convertible notes conversion to common shares		—			9,751,946			—

Diluted weighted average common shares outstanding		85,098,579			93,694,924			80,673,682

Diluted Earnings Per Common Share	$	1.15		$	1.94		$	1.59

For the years ended December 31, 2014, 2013 and 2012, we determined certain equity awards outstanding during each of these years qualified as participating securities. The calculation of basic and diluted earnings per common share for these years were calculated using the two-class method for these participating securities as we determined this method was more dilutive than the alternative treasury stock method. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. For the year ended December 31, 2013, 9,751,946 weighted average common shares related to the assumed conversion of the convertible notes were included in the calculation of diluted earnings per share as they were determined to be dilutive.

For the years ended December 31, 2014, 2013, and 2012, the number of outstanding equity awards that were antidilutive totaled 59,230, 224,241, and 609,201, respectively. There were no other participating securities during these periods. For the year ended December 31, 2014, 11,825,450 common shares related to the assumed conversion of our convertible notes and 985,591 weighted average common shares related to the assumed conversion of our exchangeable notes were antidilutive and were excluded from the calculation of diluted earnings per share.

Stock Repurchases

We announced a stock repurchase authorization in November 2007 for the repurchase of up to 5,000,000 common shares. This plan replaced all previous share repurchase plans and has no expiration date. During the years ended December 31, 2014 and 2013, there were no shares acquired under the plan. At December 31, 2014, there remained 4,005,985 shares available for repurchase under this plan.