Unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Company’s nonvested restricted stock is considered a participating security since the share-based awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest.



(in thousands, except per common share data)	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per common share data)	2013		2012		2013		2012
Net income attributable to The Andersons, Inc.	$	17,161	$	16,884	$	59,278	$	64,490
Less: Distributed and undistributed earnings allocated to nonvested restricted stock	56		95		210		309
Earnings available to common shareholders	$	17,105	$	16,789	$	59,068	$	64,181
Earnings per share – basic:
Weighted average shares outstanding – basic	18,673		18,534		18,648		18,516
Earnings per common share – basic	$	0.92	$	0.91	$	3.17	$	3.47
Earnings per share – diluted:
Weighted average shares outstanding – basic	18,673		18,534		18,648		18,516
Effect of dilutive awards	150		114		125		171
Weighted average shares outstanding – diluted	18,823		18,648		18,773		18,687
Earnings per common share – diluted	$	0.91	$	0.90	$	3.15	$	3.43