We report both basic and diluted earnings per share. Our restricted stock and deferred stock units contain rights to receive nonforfeitable dividends and thus, are participating securities requiring the two-class method of computing earnings per share. A reconciliation of both calculations for the three and nine months ended September 30, 2013 and 2012 is presented in the following table:



	Three months ended						Nine months ended
	September 30,						September 30,
(in thousands, except share, per share data and percentages)	2013			2012			2013			2012
Numerator:
Net income	$	58,984		$	51,183		$	156,569		$	139,620
Less: dividends declared — common and restricted shares	(22,299		)	(19,446		)	(61,820		)	(55,684		)
Undistributed earnings	36,685			31,737			94,749			83,936
Percentage allocated to common shares (a)	99.1		%	98.7		%	99.0		%	98.7		%
Undistributed earnings — common shares	36,355			31,324			93,802			82,845
Add: dividends declared — common shares	22,098			19,213			61,240			54,971
Numerator for basic and diluted earnings per common share	$	58,453		$	50,537		$	155,042		$	137,816
Denominator:
Denominator for basic earnings per common share — weighted average common shares outstanding	51,986,293			50,863,727			51,875,787			50,748,257
Incremental shares for stock options and employee stock purchase plan	435,798			745,972			417,144			754,437
Denominator for diluted earnings per common share — adjusted weighted average shares and assumed conversion	52,422,091			51,609,699			52,292,931			51,502,694
Per common share net income:
Basic	$	1.12		$	0.99		$	2.99		$	2.72
Diluted	$	1.12		$	0.98		$	2.96		$	2.68

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(a)	Weighted average common shares outstanding	51,986,293		50,863,727		51,875,787		50,748,257
	Weighted average restricted shares (participating securities)	476,177		644,233		499,573		677,070
	Total	52,462,470		51,507,960		52,375,360		51,425,327
	Percentage allocated to common shares	99.1	%	98.7	%	99.0	%	98.7	%