Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share

7. Earnings Per Share

Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the effect of restricted stock-based awards and common shares issuable upon exercise of stock options and warrants. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options outstanding were exercised and all convertible notes have been converted into common stock.

As of December 31, 2013, of the total potentially dilutive shares related to restricted stock-based awards, stock options and warrants, less than 0.1 million were anti-dilutive, compared to 1.7 million as of December 31, 2012.

As of December 31, 2013 and 2012, none of the performance related restricted stock-based awards issued in connection with the Company’s named executive officers were anti-dilutive.

As of December 31, 2013, certain performance related restricted stock-based awards were deemed to have met their respective performance targets. As such these performance related restricted stock-based awards are considered earned but not issued, and therefore have been included in this calculation.

Warrants issued in connection with the Company’s 1.50% Convertible Notes financing and 2.50% Convertible Notes financing were anti-dilutive and therefore not included in this calculation. The 1.50% Convertible Notes and the 2.50% Convertible Notes that would be subject to conversion to common stock were dilutive as of December 31, 2013 and therefore have been included in this calculation.

A reconciliation of weighted average shares used in calculating basic and diluted earnings per share follows:

	FY 2013		FY 2012		FY 2011
	(000’s omitted)
Basic		56,281		69,689		73,111
Effect of exercise of stock options		1,137		987		1,148
Effect of contingent common stock issuance		—		36		36
Effect of assumed vesting of performance related restricted stock-based awards		199		—		—
Effect of assumed vesting of restricted stock		1,432		1,245		1,200
Effect of convertible notes subject to conversion		1,685		—		—
Diluted		60,734		71,957		75,495