Earnings Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

7. Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock and deferred stock units are considered dilutive securities. Stock options to purchase 0.5 million, 0.5 million, and 0.5 million shares of common stock were outstanding at December 31, 2014, 2013, and 2012, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Years Ended December 31,
	2014		2013		2012
Numerator:
Net income	$	119,198	$	123,170	$	111,830
Denominator:
Denominator for basic earnings per share -
weighted average shares		38,705		39,650		40,337
Effect of dilutive securities:
Employee stock options and restricted units		425		586		654
Denominator for diluted earnings per share -
Adjusted weighted average shares and the effect of dilutive
securities		39,130		40,236		40,991
Net income per share:
Net income per share - basic	$	3.08	$	3.11	$	2.77
Net income per share - diluted	$	3.05	$	3.06	$	2.73

Common Stock Repurchases

As of December 31, 2014 the Company had $42.4 million remaining on its current Board authorization to repurchase USI common stock. In February 2015, the Board of Directors authorized the Company to purchase an additional $100 million of common stock. In 2014 and 2013, the Company repurchased 1,255,705 and 1,684,365 shares of USI’s common stock at an aggregate cost of $50.6 million and $62.1 million, respectively. Depending on market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data. During 2014, 2013 and 2012, the Company reissued 250,747, 1,086,502, and 619,664 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans.