Net Income Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income Per Share

9. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. Performance-based awards are included in diluted shares based on the level of performance that management estimates is the most probable outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition and, if material, adjusts the number of shares included in diluted shares accordingly.

The following table sets forth the reconciliation of numerators and denominators of basic and diluted net income per share computations for the three and nine months ended September 30, 2014 and 2013 (dollars and shares in thousands, except per share amounts):

	Three Months Ended    September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Numerator:
Net income attributable to Cash America International, Inc.	$	9,916	$	46,186	$	76,624	$	115,244
Denominator:
Total weighted average basic shares(a)	29,186		28,426		28,808		28,747
Shares applicable to stock-based compensation(b)	126		102		99		92
Convertible debt(c)	—		1,851		464		2,018
Total weighted average diluted shares(d)	29,312		30,379		29,371		30,857
Net income – basic	$	0.34	$	1.62	$	2.66	$	4.01
Net income – diluted	$	0.34	$	1.52	$	2.61	$	3.73

(a) Includes (i) vested and deferred restricted stock units of 299 and 301, as well as 32 and 31 shares held in the Company’s nonqualified savings plan for the three months ended September 30,2014 and 2013, respectively, and (ii) vested and deferred restricted stock units of 306 and 308, as well as 32 and 31 shares held in the Company’s nonqualified savings plan for the nine months ended September 30,2014 and 2013, respectively.

(b) Includes shares related to unvested restricted stock unit awards.

(c) On May 15, 2014, the Company called the notes and the noteholders elected to convert such notes. The Company settled the principal portion of the outstanding 2029 Convertible Notes in cash and issued 747,085 of the Company’s common shares related to the conversion spread. Prior to the repayment of the 2029 Convertible Notes, only the shares related to the conversion spread were included in weighted average diluted shares, because the Company intended to pay the principal portion of the notes in cash. See Note 7 for further discussion of the 2029 Convertible Notes.

(d) There were no anti-dilutive shares for the three months ended September 30, 2014 and 5 anti-dilutive shares for the nine months ended September 30, 2014, respectively, and no anti-dilutive shares for the three months ended September 30, 2013 and 25 anti-dilutive shares for the nine months ended September 30,2013, respectively.