Earnings per Share

3 Months Ended

Dec. 31, 2014

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
	December 31,
	2014			2013
	(in thousands, except per share amounts)
Numerator:
Income from continuing operations	$	203,057		$	173,182
Loss from discontinued operations	(15		)	—
Net income	203,042			173,182
Adjustment for basic earnings per share:
Earnings allocated to unvested shareholders	(1,255		)	(992		)
Numerator for basic earnings per share:
From continuing operations	201,802			172,190
From discontinued operations	(15		)	—
	201,787			172,190
Adjustment for diluted earnings per share:
Effect of reallocating undistributed earnings of unvested shareholders	6			7
Numerator for diluted earnings per share:
From continuing operations	201,808			172,197
From discontinued operations	(15		)	—
	$	201,793		$	172,197
Denominator:
Denominator for basic earnings per share — weighted-average shares	107,973			107,149
Effect of dilutive shares from stock options and restricted stock	870			1,428
Denominator for diluted earnings per share — adjusted weighted-average shares	108,843			108,577
Basic earnings per common share:
Income from continuing operations	$	1.87		$	1.61
Income from discontinued operations	—			—
Net income	$	1.87		$	1.61
Diluted earnings per common share:
Income from continuing operations	$	1.85		$	1.59
Income from discontinued operations	—			—
Net income	$	1.85		$	1.59

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
	December 31,
	2014		2013
	(in thousands, except per share amounts)
Shares excluded from calculation of diluted earnings per share	669		261
Weighted-average price per share	$	72.87	$	79.67