Earnings Per Share

Basic and diluted earnings per share for 2013, 2012 and 2011 were calculated as follows:



	Year Ended December 31,
	2013		2012		2011
Numerator:
Net income	$	104.8	$	85.8	$	25.1
Denominator - Weighted-average common shares outstanding (in thousands):
Basic¹	18,827		19,115		18,979
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares	178		163		—
Add: dilutive effect of warrants	241		—		—
Diluted²	19,246		19,278		18,979
Earnings per common share, Basic:
Net income per share	$	5.56	$	4.49	$	1.32
Earnings per common share, Diluted:
Net income per share²	$	5.44	$	4.45	$	1.32

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¹	The basic weighted-average number of common shares outstanding during the period excludes unvested share-based incentive awards.


²	The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1).

Options to purchase 20,791 common shares at an average exercise price of $80.01 per share were outstanding at both December 31, 2013 and December 31, 2012. The potential dilutive effect of options outstanding was zero for 2013, 2012 and 2011. Warrants relating to approximately 3.6 million common shares were outstanding at both December 31, 2013 (at an average exercise price of approximately $61.08 per share) and December 31, 2012 (at an average exercise price of approximately $61.31 per share).

During 2013, 2012 and 2011, the Company paid a total of approximately $23.0 ($1.20 per common share), $19.6 ($1.00 per common share), and $18.9 ($0.96 per common share), respectively, in cash dividends to stockholders, including the holders of restricted stock, and dividend equivalents to the holders of certain 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, net (see Note 16).

From time to time, the Company repurchases shares pursuant to a stock repurchase program authorized by the Company’s Board of Directors. During 2013, the Company’s Board of Directors twice authorized additional funds under this program, with $75.0 million authorized in April 2013 and another $75.0 million authorized in December 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.

In 2013, the Company repurchased 1,232,077 shares of common stock at a weighted-average price of $64.35 per share pursuant to this authorization. The total cost of $79.3 was recorded as Treasury Stock. The Company purchased no shares under this program during 2012 and 2011. At December 31, 2013 and December 31, 2012, $117.6 and $46.9, respectively, were available to repurchase the Company’s common shares pursuant to the stock repurchase program.