Net Income Per Share

6 Months Ended

Jun. 30, 2013

Net Income Per Share

Note I—Net Income Per Share

The calculation of net income per share for the three and six months ended June 30, 2013 and 2012 is reflected in the following table (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Basic net income per share:
Net income	$	63,089	$	45,329	$	118,952	$	93,663
Income allocated to participating securities—basic		1		228		4		494
Net income available to common stockholders—basic	$	63,088	$	45,101	$	118,948	$	93,169
Basic weighted average shares		136,385		138,588		136,845		138,986
Basic net income per share	$	.46	$	.33	$	.87	$	.67
Diluted net income per share:
Net income	$	63,089	$	45,329	$	118,952	$	93,663
Income allocated to participating securities—diluted		1		228		4		492
Net income available to common stockholders—diluted	$	63,088	$	45,101	$	118,948	$	93,171
Basic weighted average shares		136,385		138,588		136,845		138,986
Dilutive effect of potential common shares		1,274		1,151		1,179		1,050
Diluted weighted average shares		137,659		139,739		138,024		140,036
Diluted net income per share	$	.46	$	.32	$	.86	$	.67

Potential common shares include the dilutive effect of stock options, unvested performance-based restricted stock, restricted stock which contains forfeitable rights to dividends, and stock units. The weighted average diluted common shares outstanding for the three and six months ended June 30, 2013 and 2012, excludes the effect of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Total number of anti-dilutive potential common shares		165		239		83		233

Employee stock options will have a dilutive effect under the treasury method only when the respective period’s average market value of the Company’s common stock exceeds the exercise proceeds. Under the treasury method, exercise proceeds include the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in capital surplus, if the options were exercised and the stock units and performance-based restricted stock had vested.