Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share:

Basic earnings per share (“EPS”) are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS with the denominator adjusted for the dilutive effect of the Notes and nonvested share awards, if dilutive. For the Notes, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company’s common stock during any quarter exceeds $65.72, which did not occur during the period from which the Notes were issued on August 13, 2013 through March 31, 2015. Share-based awards that are contingent upon the attainment of performance goals are not included in the computation of diluted EPS until the performance goals have been attained. The dilutive effect of nonvested shares is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the vesting of nonvested shares would be used to purchase common shares at the average market price for the period. The assumed proceeds include the windfall tax benefit that would be realized upon assumed exercise.

The following tables reconcile the computation of basic EPS and diluted EPS for the three months ended March 31, 2015 and 2014 (amounts in thousands, except per share amounts):

	For the Three Months Ended March 31,
	2015					2014
	Net Income		Weighted  Average Common  Shares	EPS		Net Income		Weighted  Average Common  Shares	EPS
Basic EPS	$	58,135	48,724	$	1.19	$	40,840	49,929	$	0.82
Dilutive effect of nonvested share awards			328	—				434	(0.01		)
Diluted EPS	$	58,135	49,052	$	1.19	$	40,840	50,363	$	0.81

There were no antidilutive options outstanding for the three months ended March 31, 2015 and 2014.