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,
	2016			2015 (as adjusted)			2016			2015 (as adjusted)
	(in thousands, except per share amounts)

Numerator:
Income from continuing operations	$	25,174		$	153,542		$	41,072		$	357,165
Income (loss) from discontinued operations	(3,969		)	1			(3,865		)	(14		)

Net income	21,205			153,543			37,207			357,151
Adjustment for basic earnings per share:
Earnings allocated to unvested shareholders	(483		)	(974		)	(940		)	(2,241		)

Numerator for basic earnings per share:
From continuing operations	24,691			152,568			40,132			354,924
From discontinued operations	(3,969		)	1			(3,865		)	(14		)


Adjustment for diluted earnings per share:	20,722			152,569			36,267			354,910
Effect of reallocating undistributed earnings of unvested shareholders	—			3			—			10

Numerator for diluted earnings per share:
From continuing operations	24,691			152,571			40,132			354,934
From discontinued operations	(3,969		)	1			(3,865		)	(14		)

	$	20,722		$	152,572		$	36,267		$	354,920

Denominator:
Denominator for basic earnings per share — weighted-average shares	108,014			107,646			107,933			107,812
Effect of dilutive shares from stock options and restricted stock	452			724			497			808

Denominator for diluted earnings per share — adjusted weighted-average shares	108,466			108,370			108,430			108,620

Basic earnings per common share:
Income from continuing operations	$	0.23		$	1.42		$	0.38		$	3.29
Loss from discontinued operations	(0.04		)	—			(0.04		)	—

Net income	$	0.19		$	1.42		$	0.34		$	3.29

Diluted earnings per common share:
Income from continuing operations	$	0.23		$	1.41		$	0.37		$	3.27
Loss from discontinued operations	(0.04		)	—			(0.04		)	—

Net income	$	0.19		$	1.41		$	0.33		$	3.27

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,
	2016		2015		2016		2015
	(in thousands, except per share amounts)

Shares excluded from calculation of diluted earnings per share	2,211		667		2,211		667
Weighted-average price per share	$	62.29	$	72.85	$	62.29	$	72.85