| Net Income Per Share |
8. 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 six months ended June 30, 2014 and 2013 (dollars and shares in thousands, except per share amounts): | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended June 30, | | 2014 | | 2013 | | 2014 | | 2013 | Numerator: | | | | | | | | Net income attributable to Cash America International, Inc. | $ | 20,971 |
| | $ | 25,132 |
| | $ | 66,708 |
| | $ | 69,058 |
| Denominator: | | | | | | | | Total weighted average basic shares(a) | 28,823 |
| | 28,721 |
| | 28,616 |
| | 28,910 |
| Shares applicable to stock-based compensation(b) | 87 |
| | 75 |
| | 61 |
| | 89 |
| Convertible debt(c) | 346 |
| | 2,049 |
| | 688 |
| | 2,024 |
| Total weighted average diluted shares(d) | 29,256 |
| | 30,845 |
| | 29,365 |
| | 31,023 |
| Net income – basic | $ | 0.73 |
| | $ | 0.88 |
| | $ | 2.33 |
| | $ | 2.39 |
| Net income – diluted | $ | 0.72 |
| | $ | 0.81 |
| | $ | 2.27 |
| | $ | 2.23 |
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| | (a) | Includes (i) vested and deferred restricted stock units of 309 and 313, as well as 32 and 31 shares held in the Company’s nonqualified savings plan for the three months ended June 30, 2014 and 2013, respectively, and (ii) vested and deferred restricted stock units of 309 and 312, as well as 32 and 31 shares held in the Company's nonqualified savings plan for the six months ended June 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 6 for further discussion of the 2029 Convertible Notes. |
| | (d) | There were 7 and 13 anti-dilutive shares for the three and six months ended June 30, 2014, respectively, and 5 and 46 anti-dilutive shares for the three and six months ended June 30, 2013, respectively. |
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