Earnings Per Share

9 Months Ended

Sep. 30, 2014

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, common shares issuable upon exercise of stock options and warrants and shares underlying convertible notes potentially issuable upon conversion. 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 September 30, 2014, of the total potentially dilutive shares related to restricted stock-based awards, stock options and warrants, approximately 0.1 million were anti-dilutive, compared to less than 0.1 million as of September 30, 2013.

As of September 30, 2014 and 2013, none of the performance related restricted stock-based awards issued in connection with the Company’s named executive officers were anti-dilutive.

The 1.50% Convertible Notes and Warrants and the 2.50% Convertible Notes and Warrants that would be subject to conversion to common stock were dilutive as of September 30, 2014 and therefore have been included in this calculation.

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

(000’s omitted)	For the Three Months Ended September 30, (unaudited)				For the Nine Months Ended September 30, (unaudited)
	2014		2013		2014		2013
Basic		47,991		53,325		48,682		57,966
Effect of exercise of stock options		987		1,158		1,036		1,123
Effect of assumed vesting of performance related to restricted stock-based awards		381		180		127		60
Effect of assumed vesting of restricted stock		1,387		1,489		1,369		1,450
Effect of convertible notes subject to conversion		5,753		1,653		5,411		551
Effect of convertible notes warrants subject to conversion		1,958		—		1,681		—
Diluted		58,457		57,805		58,306		61,150