Earnings per Share

9 Months Ended

Jun. 30, 2013

Earnings per Share

Earnings per Share

3.     Earnings per Share

Accounting Standards Codification (“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 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						Nine Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(in thousands, except per share amounts)
Numerator:
Income from continuing operations	$	250,978		$	149,943		$	561,656		$	424,003
Income (loss) from discontinued operations	15,181			(18		)	15,186			(73		)
Net income	266,159			149,925			576,842			423,930
Adjustment for basic earnings per share:
Earnings allocated to unvested shareholders	(1,441		)	(606		)	(2,972		)	(1,612		)
Numerator for basic earnings per share:
From continuing operations	249,537			149,337			558,684			422,391
From discontinued operations	15,181			(18		)	15,186			(73		)
	264,718			149,319			573,870			422,318
Adjustment for diluted earnings per share:
Effect of reallocating undistributed earnings of unvested shareholders	15			7			35			22
Numerator for diluted earnings per share:
From continuing operations	249,552			149,344			558,719			422,413
From discontinued operations	15,181			(18		)	15,186			(73		)
	$	264,733		$	149,326		$	573,905		$	422,340
Denominator:
Denominator for basic earnings per share — weighted-average shares	106,430			107,016			106,206			107,196
Effect of dilutive shares from stock options and restricted stock	1,396			1,409			1,511			1,602
Denominator for diluted earnings per share — adjusted weighted-average shares	107,826			108,425			107,717			108,798
Basic earnings per common share:
Income from continuing operations	$	2.35		$	1.40		$	5.26		$	3.94
Income from discontinued operations	0.14			—			0.14			—
Net income	$	2.49		$	1.40		$	5.40		$	3.94
Diluted earnings per common share:
Income from continuing operations	$	2.32		$	1.38		$	5.19		$	3.88
Income from discontinued operations	0.14			—			0.14			—
Net income	$	2.46		$	1.38		$	5.33		$	3.88

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				Nine Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
	(in thousands, except per share amounts)
Shares excluded from calculation of diluted earnings per share	750		755		801		446
Weighted-average price per share	$	57.29	$	54.86	$	57.22	$	59.68