Earnings per Share

3 Months Ended

Dec. 31, 2015

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
	December 31,
	2015			2014 (as adjusted)
	(in thousands, except per share amounts)
Numerator:
Income from continuing operations	$	15,898		$	203,623
Income (loss) from discontinued operations	104			(15		)
Net income	16,002			203,608
Adjustment for basic earnings per share:
Earnings allocated to unvested shareholders	(260		)	(1,258		)
Numerator for basic earnings per share:
From continuing operations	15,638			202,365
From discontinued operations	104			(15		)
	15,742			202,350
Adjustment for diluted earnings per share:
Effect of reallocating undistributed earnings of unvested shareholders	—			6
Numerator for diluted earnings per share:
From continuing operations	15,638			202,371
From discontinued operations	104			(15		)
	$	15,742		$	202,356
Denominator:
Denominator for basic earnings per share — weighted-average shares	107,852			107,973
Effect of dilutive shares from stock options and restricted stock	557			870
Denominator for diluted earnings per share — adjusted weighted-average shares	108,409			108,843
Basic earnings per common share:
Income from continuing operations	$	0.15		$	1.87
Income from discontinued operations	—			—
Net income	$	0.15		$	1.87
Diluted earnings per common share:
Income from continuing operations	$	0.15		$	1.86
Income from discontinued operations	—			—
Net income	$	0.15		$	1.86

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,
	2015		2014
	(in thousands, except per share amounts)
Shares excluded from calculation of diluted earnings per share	1,899		669
Weighted-average price per share	$	63.66	$	72.87