| NET INCOME PER COMMON SHARE |
NET INCOME PER COMMON SHARE | | | | | | | | | | | | | | | | | (Thousands of dollars except per share data) | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | 2014 | | 2013 | | 2014 | | 2013 | Basic | | | | | | | | Average common shares outstanding | 94,800,191 |
| | 100,460,185 |
| | 96,744,423 |
| | 101,362,328 |
| | | | | | | | | Net income | $ | 326,240 |
| | $ | 262,966 |
| | $ | 733,144 |
| | $ | 636,438 |
| Less net income allocated to unvested restricted shares | (1,992 | ) | | (1,700 | ) | | (4,237 | ) | | (3,978 | ) | Net income allocated to common shares | $ | 324,248 |
| | $ | 261,266 |
| | $ | 728,907 |
| | $ | 632,460 |
| Basic net income per common share | $ | 3.42 |
| | $ | 2.60 |
| | $ | 7.53 |
| | $ | 6.24 |
| | | | | | | | | Diluted | | | | | | | | Average common shares outstanding | 94,800,191 |
| | 100,460,185 |
| | 96,744,423 |
| | 101,362,328 |
| Stock options and other contingently issuable shares (1) | 1,913,852 |
| | 2,162,329 |
| | 1,926,576 |
| | 2,189,214 |
| Average common shares outstanding assuming dilution | 96,714,043 |
| | 102,622,514 |
| | 98,670,999 |
| | 103,551,542 |
| | | | | | | | | Net income | $ | 326,240 |
| | $ | 262,966 |
| | $ | 733,144 |
| | $ | 636,438 |
| Less net income allocated to unvested restricted shares | | | | | | | | assuming dilution | (1,955 | ) | | (1,667 | ) | | (4,160 | ) | | (3,902 | ) | Net income allocated to common shares assuming | | | | | | | | dilution | $ | 324,285 |
| | $ | 261,299 |
| | $ | 728,984 |
| | $ | 632,536 |
| Diluted net income per common share | $ | 3.35 |
| | $ | 2.55 |
| | $ | 7.39 |
| | $ | 6.11 |
|
| | (1) | There were no options excluded due to their anti-dilutive effect for the three months ended September 30, 2014. Stock options and other contingently issuable shares excluded 15,885 shares for the nine months ended September 30, 2014. There were 16,609 options excluded due to their anti-dilutive effect for the three and nine months ended September 30, 2013. |
The Company has two classes of participating securities: common shares and restricted shares, representing 99% and 1% of outstanding shares, respectively. The restricted shares are shares of unvested restricted stock granted under the Company’s restricted stock award program. Time-based restricted shares receive non-forfeitable dividends, while dividends on performance-based restricted shares are deferred and payment is contingent upon the awards vesting. The time-based restricted shares are considered a participating security, therefore, basic and diluted earnings per share are calculated using the two-class method in accordance with the Earnings Per Share Topic of the ASC. |