Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

7.  Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock and deferred stock units are considered dilutive securities. Stock options to purchase 0.5 million, 0.5 million, and 0.1 million shares of common stock were outstanding at December 31, 2013, 2012, and 2011, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Years Ended December 31,
	2013		2012		2011
Numerator:
Net income	$	123,170	$	111,830	$	108,996
Denominator:
Denominator for basic earnings per share: Weighted average shares		39,650		40,337		43,822
Effect of dilutive securities:
Employee stock options and restricted units		586		654		1,192
Denominator for diluted earnings per share:
Adjusted weighted average shares and the effect of dilutive securities		40,236		40,991		45,014
Net income per common share:
Net income per share—basic	$	3.11	$	2.77	$	2.49
Net income per share—diluted	$	3.06	$	2.73	$	2.42

Common Stock Repurchases

As of December 31, 2013 the Company had Board authorization to repurchase $93.0 million of USI common stock. In 2013 and 2012, the Company repurchased 1,684,365 and 2,454,037 shares of USI’s common stock at an aggregate cost of $62.1 million and $69.9 million, respectively. Depending on market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data. During 2013, 2012 and 2011, the Company reissued 1,086,502, 619,664 and 970,749 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans.