Earnings Per Share Reconciliation

12 Months Ended

Dec. 31, 2014

Earnings Per Share Reconciliation

Earnings Per Share Reconciliation

Note D: Earnings Per Share Reconciliation

The Company computes earnings per share in accordance with ASC 260, which requires earnings per share for each class of stock to be calculated using the two-class method. The two-class method is the method by which a company allocates earnings or loss between the holders of its common stock and its participating security holders. Under the two-class method, the allocation of earnings or loss between common shareholders and other security holders is based on their respective participation rights in dividends and undistributed earnings for the reporting period. All outstanding nonvested shares of restricted stock that contain non-forfeitable rights to dividends are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company's nonvested shares of restricted stock with non-forfeitable rights to dividends are considered participating securities in accordance with ASC 260. As all of the nonvested shares of restricted stock with non-forfeitable rights to dividends vested as of March 31, 2014, the Company had no outstanding participating securities as of December 31, 2014. For purposes of determining diluted earnings per common share, basic earnings per common share is further adjusted to include the effect of potential dilutive common shares outstanding, including stock options and warrants using the treasury stock method and convertible debt using the if-converted method.

The following table displays the computation of basic and diluted earnings per share:

	YEAR ENDED DECEMBER 31,
(in thousands, except share data)		2014			2013			2012
NUMERATOR
Net income from continuing operations	$	175,799		$	379,099		$	42,382
Net income (loss) from discontinued operations		–			106			(2,000	)
Less: distributed earnings allocated to nonvested restricted stock		–			(13	)		(42	)
Less: undistributed earnings allocated to nonvested restricted stock		(56	)		(1,135	)		(313	)
Numerator for basic earnings per share		175,743			378,057			40,027
Plus: interest on 1.6 percent convertible senior notes due 2018		2,916			2,916			1,829
Plus: interest on 0.25 percent convertible senior notes due 2019		1,197			710			–
Plus: undistributed earnings allocated to nonvested restricted stock		56			1,135			313
Less: undistributed earnings reallocated to nonvested restricted stock		(45	)		(931	)		(284	)
Numerator for diluted earnings per share	$	179,867		$	381,887		$	41,885
DENOMINATOR
Basic earnings per share—weighted-average shares		46,579,641			45,966,307			44,761,178
Effect of dilutive securities:
Share-based payments		1,048,782			1,031,656			487,443
1.6 percent convertible senior notes due 2018		7,023,780			7,023,780			4,406,700
0.25 percent convertible senior notes due 2019		3,565,962			2,198,196			–
Diluted earnings per share—adjusted
weighted-average shares and assumed conversions		58,218,165			56,219,939			49,655,321
NET INCOME (LOSS) PER COMMON SHARE
Basic
Continuing operations	$	3.77		$	8.22		$	0.93
Discontinued operations		0.00			0.00			(0.04	)
Total		3.77			8.22			0.89
Diluted
Continuing operations		3.09			6.79			0.88
Discontinued operations		0.00			0.00			(0.04	)
Total	$	3.09		$	6.79		$	0.84