EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE

EARNINGS PER SHARE

4. EARNINGS PER SHARE

Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. The basic and diluted calculations differ as a result of the dilutive effect of stock options and time lapse restricted shares included in diluted earnings per share, but excluded from basic earnings per share. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities.

A reconciliation of weighted average shares outstanding is as follows:

	Three months ended September 30						Nine months ended September 30
(In thousands except per share data)	2014			2013			2014			2013
Net income available for stockholders:	$	64,885		$	53,760		$	167,556		$	129,252
Less: Dividends paid		(22,939	)		(21,892	)		(68,822	)		(65,923	)
Undistributed earnings	$	41,946		$	31,868		$	98,734		$	63,329
Basic shares outstanding:
Common stock		211,604			210,899			211,552			211,493
Restricted shares of common stock		3,598			4,169			3,648			4,222
		215,202			215,068			215,200			215,715
Diluted shares outstanding:
Common stock		211,604			210,899			211,552			211,493
Dilutive effect of stock based awards		1,132			1,074			1,116			1,147
		212,736			211,973			212,668			212,640
Restricted shares of common stock		3,598			4,169			3,648			4,222
		216,334			216,142			216,316			216,862

Reported basic EPS of the restricted shares of common stock under the two-class method generated the following reductions - $0.02 for the three months ended September 30, 2014 and $0.01 for the three months ended September 30, 2013; $0.06 for the nine months ended September 30, 2014 and $0.04 for the nine months ended September 30, 2013.