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EARNINGS PER SHARE
 6 Months Ended 12 Months Ended
Mar. 31, 2015
Sep. 30, 2014
EARNINGS PER SHARE    
EARNINGS PER SHARE

 

 

3.Earnings per Share

 

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share.  We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends.  Such grants are considered participating securities under ASC 260.  As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

 

Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented.

 

Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock.

 

The following table sets forth the computation of basic and diluted earnings per share:

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
149,536

 

$
174,589

 

$
352,593

 

$
347,771

 

Loss from discontinued operations

 
1

 
(19

)
(14

)
(19

)

Net income

 
149,537

 
174,570

 
352,579

 
347,752

 

Adjustment for basic earnings per share:

 

 

 

 

 

 

 

 

 

Earnings allocated to unvested shareholders

 
(948

)
(1,035

)
(2,212

)
(2,027

)

Numerator for basic earnings per share:

 

 

 

 

 

 

 

 

 

From continuing operations

 
148,588

 
173,554

 
350,381

 
345,744

 

From discontinued operations

 
1

 
(19

)
(14

)
(19

)

 

 
148,589

 
173,535

 
350,367

 
345,725

 

Adjustment for diluted earnings per share:

 

 

 

 

 

 

 

 

 

Effect of reallocating undistributed earnings of unvested shareholders

 
3

 
8

 
9

 
17

 

Numerator for diluted earnings per share:

 

 

 

 

 

 

 

 

 

From continuing operations

 
148,591

 
173,562

 
350,390

 
345,761

 

From discontinued operations

 
1

 
(19

)
(14

)
(19

)

 

 

$
148,592

 

$
173,543

 

$
350,376

 

$
345,742

 

Denominator:

 

 

 

 

 

 

 

 

 

Denominator for basic earnings per share — weighted-average shares

 
107,646

 
107,692

 
107,812

 
107,417

 

Effect of dilutive shares from stock options and restricted stock

 
724

 
1,389

 
808

 
1,528

 

Denominator for diluted earnings per share — adjusted weighted-average shares

 
108,370

 
109,081

 
108,620

 
108,945

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
1.38

 

$
1.61

 

$
3.25

 

$
3.22

 

Income from discontinued operations

 

—

 

—

 

—

 

—

 

Net income

 

$
1.38

 

$
1.61

 

$
3.25

 

$
3.22

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
1.37

 

$
1.59

 

$
3.23

 

$
3.17

 

Income from discontinued operations

 

—

 

—

 

—

 

—

 

Net income

 

$
1.37

 

$
1.59

 

$
3.23

 

$
3.17

 

 

The following shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Shares excluded from calculation of diluted earnings per share

 
667 

 
215 

 
667 

 
256 

 

Weighted-average price per share

 

$
72.85 

 

$
79.67 

 

$
72.85 

 

$
79.67 

 

 

NOTE 7 EARNINGS PER SHARE

 

        ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividend or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

 

        Basic earnings per share is computed utilizing the two-class method and is calculated based on weighted-average number of common shares outstanding during the periods presented.

 

        Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock.

 

        The following table sets forth the computation of basic and diluted earnings per share:

 

                                                                                                                                                                                    

 

 

September 30,

 

 

 

2014

 

2013

 

2012

 

 

 

(in thousands)

 

Numerator:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
708,766

 

$
721,453

 

$
573,609

 

Income (loss) from discontinued operations

 

 
(47

)

 
15,186

 

 
7,436

 

 

 

 

 

 

 

 

 

Net income

 

 
708,719

 

 
736,639

 

 
581,045

 

Adjustment for basic earnings per share

 

 

 

 

 

 

 

 

 

 

Earnings allocated to unvested shareholders

 

 
(4,145

)

 
(3,842

)

 
(2,246

)

 

 

 

 

 

 

 

 

Numerator for basic earnings per share:

 

 

 

 

 

 

 

 

 

 

From continuing operations

 

 
704,621

 

 
717,611

 

 
571,363

 

From discontinued operations

 

 
(47

)

 
15,186

 

 
7,436

 

 

 

 

 

 

 

 

 

 

 

 
704,574

 

 
732,797

 

 
578,799

 

Adjustment for diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

Effect of reallocating undistributed earnings of unvested shareholders

 

 
30

 

 
46

 

 
31

 

Numerator for diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

From continuing operations

 

 
704,651

 

 
717,657

 

 
571,394

 

From discontinued operations

 

 
(47

)

 
15,186

 

 
7,436

 

 

 

 

 

 

 

 

 

 

 

$
704,604

 

$
732,843

 

$
578,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

Denominator for basic earnings per share—weighted-average shares

 

 
107,800

 

 
106,286

 

 
106,819

 

Effect of dilutive shares from stock options and restricted stock

 

 
1,341

 

 
1,593

 

 
1,558

 

 

 

 

 

 

 

 

 

Denominator for diluted earnings per share—adjusted weighted-average shares

 

 
109,141

 

 
107,879

 

 
108,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
6.54

 

$
6.75

 

$
5.35

 

Income from discontinued operations

 

 

—

 

 
0.14

 

 
0.07

 

 

 

 

 

 

 

 

 

Net income

 

$
6.54

 

$
6.89

 

$
5.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
6.46

 

$
6.65

 

$
5.27

 

Income from discontinued operations

 

 

—

 

 
0.14

 

 
0.07

 

 

 

 

 

 

 

 

 

Net income

 

$
6.46

 

$
6.79

 

$
5.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        The following shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

                                                                                                                                                                                    

 

 

 

2014

 

2013

 

2012

 

 

 

(in thousands, except per share amounts)

 

Shares excluded from calculation of diluted earnings per share

 

 
215 

 

 
743 

 

 
446 

 

Weighted-average price per share

 

$
79.67 

 

$
57.27 

 

$
59.68