(4) Earnings per Share

The Company reports its earnings per share under the two-class method. Under this method, potentially dilutive securities are excluded from the calculation of diluted earnings per share (as well as their related impact on the net income available to common stockholders) when their impact on net income available to common stockholders is anti-dilutive. Potentially dilutive securities for the years ended December 31, 2014, 2013, and 2012 included all outstanding stock options and shares of restricted stock, which were included in the calculation of diluted earnings per share for these periods. The potentially dilutive effect of outstanding warrants and the underlying shares exercisable under the Company’s convertible notes were excluded from diluted shares outstanding for the years ended December 31, 2014, 2013, and 2012 because the exercise price exceeded the average market price of the Company’s common stock. The effect of the note hedge the Company purchased to offset the underlying conversion option embedded in its convertible notes was also excluded, as the effect is anti-dilutive.

The shares of restricted stock issued by the Company have a non-forfeitable right to cash dividends, if and when declared by the Company. Accordingly, restricted shares are considered to be participating securities and, as such, the Company has allocated the undistributed earnings for the years ended December 31, 2014, 2013, and 2012 among the Company's outstanding shares of common stock and issued but unvested restricted shares, as follows:

Earnings per Share (in thousands, excluding share and per share amounts):



	2014
	Income		Weighted Average Shares Outstanding		Earnings Per Share
Basic:
Net income attributable to controlling interests and available to common stockholders	$	37,140
Less: Undistributed earnings allocated to unvested restricted shares		(126)
Net income available to common stockholders	$	37,014		44,338,408	$	0.83

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	126
Stock options added to the denominator under the treasury stock method				117,777
RSUs added to the denominator under the treasury stock method				411,119
Less: Undistributed earnings reallocated to restricted shares		(125)
Net income available to common stockholders and assumed conversions	$	37,015		44,867,304	$	0.82



	2013						2012
	Income		Weighted Average Shares Outstanding		Earnings Per Share		Income		Weighted Average Shares Outstanding		Earnings Per Share
Basic:
Net income attributable to controlling interests and available to common stockholders	$	23,816					$	43,591
Less: Undistributed earnings allocated to unvested restricted shares		(672)						(1,497)
Net income available to common stockholders	$	23,144		44,371,313	$	0.52	$	42,094		43,469,175	$	0.97

Diluted:
Effect of dilutive securities:
Add: Undistributed earnings allocated to restricted shares	$	672					$	1,497
Stock options added to the denominator under the treasury stock method				206,322						406,157
Less: Undistributed earnings reallocated to restricted shares		(669)						(1,483)
Net income available to common stockholders and assumed conversions	$	23,147		44,577,635	$	0.52	$	42,108		43,875,332	$	0.96

The computation of diluted earnings per share excluded potentially dilutive common shares related to restricted stock of 59,301 shares, 516,127 shares, and 630,537 shares for the years ended December 31, 2014, 2013, and 2012, respectively, because the effect of including these shares in the computation would have been anti-dilutive.