Earnings Per Share

Basic and diluted earnings per share were calculated as follows, for each period presented:



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Numerator:
Net income	$	25.4	$	29.2	$	77.5	$	76.7
Denominator — Weighted-average common shares outstanding (in thousands)¹:
Basic	18,548		19,154		18,915		19,104
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares	165		134		167		136
Add: dilutive effect of warrants	345		—		185		—
Diluted	19,058		19,288		19,267		19,240
Earnings per common share, Basic:
Net income per share	$	1.37	$	1.52	$	4.09	$	4.01
Earnings per common share, Diluted:
Net income per share	$	1.34	$	1.51	$	4.02	$	3.98

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¹	The basic weighted-average number of common shares outstanding during the period excludes non-vested common shares, restricted stock units and performance shares. The diluted weighted-average number of common shares outstanding during the period is calculated using the treasury method.

Options to purchase 20,791 common shares at an average exercise price of $80.01 per share were outstanding at both September 30, 2013 and December 31, 2012. The potential dilutive effect of options outstanding was zero for each of the periods presented.

Warrants with an exercise date of July 1, 2015 relating to approximately 3.6 million common shares were outstanding at both September 30, 2013 (at which date the average exercise price was approximately $61.14 per share) and September 30, 2012 (at which date the average exercise price was approximately $61.32 per share).

During the nine months ended September 30, 2013 and September 30, 2012, the Company paid approximately $17.3 ($0.90 per common share) and $14.7 ($0.75 per common share), respectively, in cash dividends to stockholders, including the holders of non-vested common shares, and dividend equivalents to the holders of restricted stock units and to the holders of performance shares with respect to approximately one-half of the performance shares.

Upon the termination in the third quarter of 2013 of the third-party disbursing agent agreement entered into in connection with the Company’s emergence from chapter 11 proceedings in 2006, $0.6 of cash dividends paid in respect of common shares of the Company held in trust by the third-party disbursing agent for distribution under the Company’s chapter 11 plan, as well as 9,001 such common shares, were returned to the Company at the direction of the bankruptcy court. The fair market value of the shares was included in Other income (see Note 14).

In June 2008, the Company’s Board of Directors authorized the repurchase of up to $75.0 of our common shares of which $46.9 remained available at December 31, 2012. The Company’s Board of Directors authorized an additional $75.0 under this program in April 2013. Repurchase transactions will occur at such times and prices as management deems appropriate and will be funded with the Company’s excess liquidity after giving consideration to internal and external growth opportunities and future cash flows. Repurchases may be in open-market transactions or in privately negotiated transactions, and the program may be modified or terminated by the Company’s Board of Directors at any time.

At September 30, 2013, $78.0 was available to repurchase the Company’s common shares pursuant to the stock repurchase program. The Company repurchased 707,077 shares of common stock at a weighted-average price of $62.14 per share pursuant to this authorization during the nine months ended September 30, 2013. The total cost of $43.9 was recorded as Treasury Stock.