EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2019

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, 2019.

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 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 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 0.5 million, 0.4 million and 0.2 million weighted-average anti-dilutive stock options outstanding at December 31, 2019, 2018 and 2017, 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, 2019, 2018 and 2017.

(000’s omitted, except per share data)	2019			2018			2017
Net income	$	169,063		$	168,641		$	150,717
Income attributable to unvested stock-based compensation awards		(400	)		(744	)		(597	)
Income available to common shareholders	$	168,663		$	167,897		$	150,120

Weighted-average common shares outstanding - basic		51,732			51,165			48,843

Basic earnings per share	$	3.26		$	3.28		$	3.07

Net income	$	169,063		$	168,641		$	150,717
Income attributable to unvested stock-based compensation awards		(400	)		(744	)		(597	)
Income available to common shareholders	$	168,663		$	167,897		$	150,120

Weighted-average common shares outstanding		51,732			51,165			48,843
Assumed exercise of stock options		516			583			627
Weighted-average common shares outstanding – diluted		52,248			51,748			49,470

Diluted earnings per share	$	3.23		$	3.24		$	3.03
Cash dividends declared per share	$	1.58		$	1.44		$	1.32

Stock Repurchase Program

At its December 2018 meeting, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.5 million shares of the Company’s common stock in accordance with securities laws and regulations, through December 31, 2019. At its December 2019 meeting, the Board approved a similar program for 2020, authorizing the repurchase of up to 2.6 million shares of the Company’s common stock through December 31, 2020. 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. There were no stock repurchases pursuant to the announced plans in 2019 or 2018.