Earnings Per Share Reconciliation

6 Months Ended

Jun. 30, 2015

The Company computes earnings per share in accordance with ASC No. 260, (“ASC 260”), “Earnings per Share,” 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 nonforfeitable rights to dividends are considered participating securities in accordance with ASC 260. As all of the nonvested shares of restricted stock with nonforfeitable rights to dividends vested in March 2014, the Company had no outstanding participating securities during the three- and six-month periods ended June 30, 2015, or during the three-month period ended June 30, 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 for the three- and six-month periods presented:



	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
(in thousands, except share data)	2015		2014		2015		2014
NUMERATOR
Net income	$	42,602	$	32,042	$	69,059	$	55,569
Less: undistributed earnings allocated to nonvested restricted stock	—		—		—		(35		)
Numerator for basic earnings per share	42,602		32,042		69,059		55,534
Plus: interest on 1.6 percent convertible senior notes due 2018	729		729		1,458		1,458
Plus: interest on 0.25 percent convertible senior notes due 2019	299		299		598		598
Plus: undistributed earnings allocated to nonvested restricted stock	—		—		—		35
Less: undistributed earnings reallocated to nonvested restricted stock	—		—		—		(28		)
Numerator for diluted earnings per share	$	43,630	$	33,070	$	71,115	$	57,597
DENOMINATOR
Basic earnings per share—weighted-average shares	46,706,437		46,914,902		46,579,660		46,747,403
Effect of dilutive securities:
Share-based payments	977,421		926,184		1,004,661		975,081
1.6 percent convertible senior notes due 2018	7,023,780		7,023,780		7,023,780		7,023,780
0.25 percent convertible senior notes due 2019	3,565,962		3,565,962		3,565,962		3,565,962
Diluted earnings per share—adjusted weighted-average
shares and assumed conversions	58,273,600		58,430,828		58,174,063		58,312,226
NET INCOME PER COMMON SHARE
Basic	$	0.91	$	0.68	$	1.48	$	1.19
Diluted	$	0.75	$	0.57	$	1.22	$	0.99