NOTE M: EARNINGS PER SHARE

The two class method is used in the calculations of basic and diluted earnings per share. Under the two class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of December 31, 2015.

Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding adjusted for the dilutive effect of restricted stock and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options (those where the average market price is greater than the exercise price) were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. There were approximately 0.3 million, 0.2 million and 0.3 million weighted-average anti-dilutive stock options outstanding at December 31, 2015, 2014 and 2013, respectively, which were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the years ended December 31, 2015, 2014 and 2013.

(000's omitted, except per share data)	2015			2014			2013
Net income	$	91,230		$	91,353		$	78,829
Income attributable to unvested stock-based compensation awards		(453	)		(456	)		(433	)
Income available to common shareholders	$	90,777		$	90,897		$	78,396

Weighted-average common shares outstanding - basic		40,996			40,548			40,000

Basic earnings per share	$	2.21		$	2.24		$	1.96

Net income	$	91,230		$	91,353		$	78,829
Income attributable to unvested stock-based compensation awards		(453	)		(456	)		(433	)
Income available to common shareholders	$	90,777		$	90,897		$	78,396

Weighted-average common shares outstanding		40,996			40,548			40,000
Assumed exercise of stock options		405			481			504
Weighted-average common shares outstanding – diluted		41,401			41,029			40,504

Diluted earnings per share	$	2.19		$	2.22		$	1.94
Cash dividends declared per share	$	1.22		$	1.16		$	1.10

Stock Repurchase Program

At its December 2014 meeting, the Board approved a new repurchase program authorizing the repurchase of up to 2.0 million shares of the Company’s common stock, in accordance with securities laws and regulations, through December 31, 2015. At its December 2015 meeting, the Board approved a similar program for 2016, authorizing the repurchase of up to 2.2 million shares of the Company’s common stock. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company’s discretion. During 2015 and 2014, the Company repurchased approximately 0.3 million and 0.1 million, respectively, shares of its common stock in open market transactions. There were no stock repurchases pursuant to an announced plan in 2013.