DIVIDENDS AND EARNINGS PER SHARE

Dividends

On August 1, 2013, our board of directors approved dividends of $0.25 per share of Common Stock, payable on September 13, 2013 to shareholders of record on August 30, 2013, respectively. See discussion of our dividends in Note 11 to our fiscal year 2013 Financial Statements. The declaration of future dividends is at the discretion of our board of directors and subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments.

Earnings per Share

Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per common share excludes options to purchase shares, restricted stock units and restricted stock awards, which were outstanding during the period but were anti-dilutive, as follows:



	Three Months Ended June 30,
	2013		2012
Options:
Outstanding	396,801		376,490
Weighted average exercise price	$	47.40	$	43.65
Restricted stock units:
Outstanding	—		72,592
Weighted average price	$	—	$	46.59
Restricted stock awards:
Outstanding	43,077		—
Weighted average price	$	62.65	$	—

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended June 30,
	2013		2012
Net income available to common stockholders (in thousands):
Income available to common stockholders – basic	$	26,886	$	23,662
Interest expense on assumed conversion of 3% Convertible Senior Notes, net of tax ⁽¹⁾	—		—
Income available to common stockholders – diluted	$	26,886	$	23,662
Shares:
Weighted average number of common shares outstanding – basic	36,182,708		35,789,700
Assumed conversion of 3% Convertible Senior Notes outstanding during the period ⁽¹⁾	—		—
Net effect of dilutive stock options, restricted stock units and restricted stock awards based on the treasury stock method	393,577		659,888
Weighted average number of common shares outstanding – diluted	36,576,285		36,449,588

Basic earnings per common share	$	0.74	$	0.66
Diluted earnings per common share	$	0.74	$	0.65

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⁽¹⁾

Diluted earnings per common share for the three months ended June 30, 2013 and 2012 excludes approximately 1.5 million of potentially dilutive shares initially issuable upon the conversion of our 3% Convertible Senior Notes. The 3% Convertible Senior Notes will be convertible, under certain circumstances, using a net share settlement process, into a combination of cash and our Common Stock. As of June 30, 2013, the base conversion price of the notes was approximately $74.81, based on the base conversion rate of 13.3666 shares of Common Stock per $1,000 principal amount of convertible notes (subject to adjustment in certain circumstances, including the payment of dividends). In general, upon conversion of a note, the holder will receive cash equal to the principal amount of the note and Common Stock to the extent of the note’s conversion value in excess of such principal amount. In addition, if at the time of conversion the applicable price of our Common Stock exceeds the base conversion price, holders will receive up to an additional 8.6882 shares of our Common Stock per $1,000 principal amount of notes, as determined pursuant to a specified formula. Such shares did not impact our calculation of diluted earnings per share for the three ended June 30, 2013 and 2012 as our stock price did not meet or exceed the base conversion price.