Stockholders’ Equity and EPS

Stockholders' Rights Plan

Our Board of Directors (the “Board”) had previously adopted a stockholders' rights plan (the "Rights Plan") to, among other things, protect our stockholders from coercive takeover tactics. The Rights Plan expired on January 31, 2014. It was not renewed or extended by our Board of Directors.

EPS

Basic EPS is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options and restricted stock units outstanding under our equity incentive plans and our ESPP. Potentially dilutive common shares are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive. The following is a reconciliation of basic EPS to diluted EPS for 2013, 2012 and 2011:



	Year ended December 31,
(Dollars and shares in thousands, except per share amounts)	2013		2012		2011
Numerator:
Net income available to common stockholders	$	215,853	$	175,103	$	171,902
Denominator:
Weighted average common shares outstanding-basic	45,309		44,242		43,004
Weighted average effect of dilutive securities:
Stock options and ESPP	431		370		517
Restricted stock units	204		152		116
Denominator for diluted calculation	45,944		44,764		43,637
Earnings per common share:
Basic	$	4.76	$	3.96	$	4.00
Diluted	$	4.70	$	3.91	$	3.94

The following table summarizes the weighted-average common shares excluded from the diluted EPS calculation as they were deemed to be antidilutive for 2013, 2012 and 2011:



	Year ended December 31,
(Shares in thousands)	2013	2012	2011
Stock options	261	695	944
Restricted stock units	105	—	149
Total	366	695	1,093

Concurrent with the issuance of our 3.875% convertible senior notes ("3.875% Convertible Notes"), we entered into a convertible note hedge and warrant agreement. The warrants expired ratably over 60 business days beginning on July 15, 2011. The common shares under these warrants were excluded from the diluted EPS calculation for all periods presented as they were deemed to be anti-dilutive based on the conversion price of $64.43 per common share.

Our $250 million 3.875% Convertible Notes matured on April 15, 2011. All of the notes were converted prior to maturity and we made an aggregate $260 million conversion settlement payment. We paid $250 million in cash (representing total principal) and $10 million through the issuance of 187,760 shares of our common stock (representing total conversion premium value). In addition, in connection with the conversion settlement, we received 186,736 shares of our common stock, valued at $10 million, from the associated convertible note hedge. Accordingly, there was not a significant impact on our total stockholders' equity with respect to settling the conversion premium value.

Accumulated Other Comprehensive Income

The following table summarizes the items reclassified out of accumulated other comprehensive (loss) income into the Consolidated Statements of Income for 2013, 2012, and 2011:



		Year ended December 31,
(Dollars in thousands)	Income Statement Location	2013			2012			2011
Reclassification adjustment for gains included in net income	Gains on investment securities, net	$	(538	)	$	(4,241	)	$	(37,127	)
Related tax expense	Income tax expense	218			1,661			15,189
Total reclassification adjustment for gains included in net income, net of tax		(320		)	(2,580		)	(21,938		)