Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

Earnings Per Share

Note 2.  Earnings Per Share

Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted and deferred stock units, restricted shares, and dilutive shares related to the company’s 5.125% convertible senior notes. Common share equivalents are excluded from the computation in periods in which they have an anti-dilutive effect. Options to purchase 2.4 million and 6.5 million shares were anti-dilutive at September 30, 2013 and 2012, respectively. The computation of diluted earnings per share for the three-month period ended September 30, 2012 did not include the after-tax equivalent of interest of $2.4 million for the company’s 5.125% senior convertible notes, due 2014 and the related weighted average equivalent of 16.6 million shares, as the result would have been anti-dilutive.

The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for net income attributable to Steel Dynamics, Inc. (in thousands, except per share data):

	Three Months Ended September 30,
	2013					2012
	Net Income (Numerator)		Shares (Denominator)	Per Share Amount		Net Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic earnings per share	$	57,486	220,926	$	0.26	$	12,833	219,191	$	0.06
Dilutive common share equivalents	—		1,366			—		853
5.125% convertible senior notes, net of tax	2,358		16,709			—		—
Diluted earnings per share	$	59,844	239,001	$	0.25	$	12,833	220,044	$	0.06

	Nine Months Ended September 30,
	2013					2012
	Net Income (Numerator)		Shares (Denominator)	Per Share Amount		Net Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic earnings per share	$	134,659	220,464	$	0.61	$	102,980	219,097	$	0.47
Dilutive common share equivalents	—		1,363			—		908
5.125% convertible senior notes, net of tax	7,074		16,670			7,074		16,531
Diluted earnings per share	$	141,733	238,497	$	0.59	$	110,054	236,536	$	0.47