11. Earnings Per Share | 11. Earnings Per Share Since we have non-vested share-based payments with a nonforfeitable right to dividends or dividend equivalents (referred to as participating securities) we are required to use the two-class method of computing earnings per share. The Company's non-vested restricted stock and restricted stock units, granted under the LTIP, for which vesting is predicated solely on the passage of time, are considered to be participating securities. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic and diluted earnings per share for the fiscal years ended September 30 are calculated as follows: | | | | 2011 | | 2010 | | 2009 | | | | | (In thousands, except per share data) | | | | | | | | | | | | | Basic Earnings Per Share from continuing operations | | | | | | | | | | | Income from continuing operations | | $ | 198,884 | | $ | 198,273 | | $ | 183,299 | | Less: Income from continuing operations allocated | | | | | | | | | | | | to participating securities | | | 2,077 | | | 2,029 | | | 1,712 | | Income from continuing operations available to | | | | | | | | | | | | common shareholders | | $ | 196,807 | | $ | 196,244 | | $ | 181,587 | | | | | | | | | | | | | | Basic weighted average shares outstanding | | | 90,201 | | | 91,852 | | | 91,117 | | Income from continuing operations per share - Basic | | $ | 2.18 | | $ | 2.14 | | $ | 1.99 | | | | | | | | | | | | | Basic Earnings Per Share from discontinued operations | | | | | | | | | | | Income from discontinued operations | | $ | 8,717 | | $ | 7,566 | | $ | 7,679 | | Less: Income from discontinued operations allocated to | | | | | | | | | | | | participating securities | | | 91 | | | 77 | | | 72 | | Income from discontinued operations available to | | | | | | | | | | | | common shareholders | | $ | 8,626 | | $ | 7,489 | | $ | 7,607 | | | | | | | | | | | | | | Basic weighted average shares outstanding | | | 90,201 | | | 91,852 | | | 91,117 | | Income from discontinued operations per share - | | | | | | | | | | | | Basic | | $ | 0.10 | | $ | 0.08 | | $ | 0.09 | | | | | | | | | | | | | | Net income per share - Basic | | $ | 2.28 | | $ | 2.22 | | $ | 2.08 | | | | | | | | | | | | | Diluted Earnings Per Share from continuing operations | | | | | | | | | | | Income from continuing operations available to | | | | | | | | | | | | common shareholders | | $ | 196,807 | | $ | 196,244 | | $ | 181,587 | | Effect of dilutive stock options and other shares | | | 4 | | | 5 | | | 4 | | Income from continuing operations available to | | | | | | | | | | | | common shareholders | | $ | 196,811 | | $ | 196,249 | | $ | 181,591 | | | | | | | | | | | | | | Basic weighted average shares outstanding | | | 90,201 | | | 91,852 | | | 91,117 | | Additional dilutive stock options and other shares | | | 451 | | | 570 | | | 503 | | Diluted weighted average shares outstanding | | | 90,652 | | | 92,422 | | | 91,620 | | Income from continuing operations per share - | | | | | | | | | | | | Diluted | | $ | 2.17 | | $ | 2.12 | | $ | 1.98 | | | | | | | | | | | | | Diluted Earnings Per Share from discontinued operations | | | | | | | | | | | Income from discontinued operations available to | | | | | | | | | | | | common shareholders | | $ | 8,626 | | $ | 7,489 | | $ | 7,607 | | Effect of dilutive stock options and other shares | | | - | | | - | | | - | | Income from discontinued operations available to | | | | | | | | | | | | common shareholders | | $ | 8,626 | | $ | 7,489 | | $ | 7,607 | | | | | | | | | | | | | | Basic weighted average shares outstanding | | | 90,201 | | | 91,852 | | | 91,117 | | Additional dilutive stock options and other shares | | | 451 | | | 570 | | | 503 | | Diluted weighted average shares outstanding | | | 90,652 | | | 92,422 | | | 91,620 | | Income from discontinued operations per share - | | | | | | | | | | | | Diluted | | $ | 0.10 | | $ | 0.08 | | $ | 0.09 | | | | | | | | | | | | | | Net income per share - Diluted | | $ | 2.27 | | $ | 2.20 | | $ | 2.07 |
There were no out-of-the-money options excluded from the computation of diluted earnings per share for the fiscal years ended September 30, 2011 and 2010. There were approximately 70,000 out-of-the-money options excluded from the computation of diluted earnings per share for the fiscal year ended September 30, 2009. |