Net Income Per Share

9 Months Ended

Sep. 30, 2013

Net Income Per Share

Note J—Net Income Per Share

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Basic net income per share:
Net income	$	66,358	$	57,660	$	185,310	$	151,323
Income allocated to participating securities—basic		—		278		3		776
Net income available to common stockholders—basic	$	66,358	$	57,382	$	185,307	$	150,547
Basic weighted average shares		135,727		137,918		136,469		138,627
Basic net income per share	$	.49	$	.42	$	1.36	$	1.09
Diluted net income per share:
Net income	$	66,358	$	57,660	$	185,310	$	151,323
Income allocated to participating securities—diluted		—		277		3		772
Net income available to common stockholders—diluted	$	66,358	$	57,383	$	185,307	$	150,551
Basic weighted average shares		135,727		137,918		136,469		138,627
Dilutive effect of potential common shares		1,514		1,223		1,290		1,108
Diluted weighted average shares		137,241		139,141		137,759		139,735
Diluted net income per share	$	.48	$	.41	$	1.35	$	1.08

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 nine months ended September 30, 2013 and 2012, excludes the effect of the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Total number of anti-dilutive potential common shares		386		406		188		231

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.