Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

6. 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, restricted stock units and deferred stock units are considered dilutive securities. For the three-month and six-month periods ending June 30, 2014 and 2013, 0.5 million and 0.6 million shares of such securities, respectively, were outstanding but were not included in the computation of diluted earnings per share because 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):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Numerator:
Net income	$	33,331	$	34,670	$	55,188	$	48,544
Denominator:
Denominator for basic earnings per share - weighted average shares		38,816		39,762		39,004		39,867
Effect of dilutive securities:
Employee stock options and restricted units		410		566		431		608
Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities		39,226		40,328		39,435		40,475
Net income per share:
Net income per share - basic	$	0.86	$	0.87	$	1.41	$	1.22
Net income per share - diluted	$	0.85	$	0.86	$	1.40	$	1.20

Common Stock Repurchases

As of December 31, 2013, the Company had Board authorization to repurchase $93.0 million of USI common stock. During the three-month periods ended June 30, 2014 and 2013, the Company repurchased 459,922 and 978,194 shares of USI’s common stock at an aggregate cost of $17.9 million and $33.2 million, respectively. During the six-month periods ended June 30, 2014 and 2013, the Company repurchased 791,291 and 1,186,468 shares of USI’s common stock at an aggregate cost of $31.7 million and $41.0 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 the first six months of 2014 and 2013, the Company reissued 91,904 and 697,326 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans.