Earnings Per Share

Since we have non-vested share-based payments with a nonforfeitable right to dividends or dividend equivalents (referred to as participating securities), we are required to use the two-class method of computing earnings per share. The Company’s non-vested restricted stock units, granted under the 1998 Long-Term Incentive Plan, for which vesting is predicated solely on the passage of time, are considered to be participating securities. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator.

Basic and diluted earnings per share for the fiscal years ended September 30 are calculated as follows:



	2015		2014		2013
	(In thousands, except per share data)
Basic Earnings Per Share from continuing operations
Income from continuing operations	$	315,075	$	289,817	$	230,698
Less: Income from continuing operations allocated to participating securities	626		711		775
Income from continuing operations available to common shareholders	$	314,449	$	289,106	$	229,923
Basic weighted average shares outstanding	101,892		97,606		90,533
Income from continuing operations per share — Basic	$	3.09	$	2.96	$	2.54
Basic Earnings Per Share from discontinued operations
Income from discontinued operations	$	—	$	—	$	12,496
Less: Income from discontinued operations allocated to participating securities	—		—		42
Income from discontinued operations available to common shareholders	$	—	$	—	$	12,454
Basic weighted average shares outstanding	101,892		97,606		90,533
Income from discontinued operations per share — Basic	$	—	$	—	$	0.14
Net income per share — Basic	$	3.09	$	2.96	$	2.68
Diluted Earnings Per Share from continuing operations
Income from continuing operations available to common shareholders	$	314,449	$	289,106	$	229,923
Effect of dilutive stock options and other shares	—		—		5
Income from continuing operations available to common shareholders	$	314,449	$	289,106	$	229,928
Basic weighted average shares outstanding	101,892		97,606		90,533
Additional dilutive stock options and other shares	—		2		1,178
Diluted weighted average shares outstanding	101,892		97,608		91,711
Income from continuing operations per share — Diluted	$	3.09	$	2.96	$	2.50
Diluted Earnings Per Share from discontinued operations
Income from discontinued operations available to common shareholders	$	—	$	—	$	12,454
Effect of dilutive stock options and other shares	—		—		—
Income from discontinued operations available to common shareholders	$	—	$	—	$	12,454
Basic weighted average shares outstanding	101,892		97,606		90,533
Additional dilutive stock options and other shares	—		2		1,178
Diluted weighted average shares outstanding	101,892		97,608		91,711
Income from discontinued operations per share — Diluted	$	—	$	—	$	0.14
Net income per share — Diluted	$	3.09	$	2.96	$	2.64

There were no out-of-the-money options excluded from the computation of diluted earnings per share for the fiscal year ended September 30, 2013. As of September 30, 2015 and 2014 there were no outstanding options.

2014 Equity Offering

On February 18, 2014, we completed the public offering of 9,200,000 shares of our common stock including the underwriters’ exercise of their overallotment option of 1,200,000 shares under our existing shelf registration statement. The offering was priced at $44.00 per share and generated net proceeds of $390.2 million, which were used to repay short-term debt outstanding under our commercial paper program, to fund infrastructure spending primarily to enhance the safety and reliability of our system and for general corporate purposes.

Share Repurchase Program

On September 28, 2011 our Board of Directors approved a program authorizing the repurchase of up to five million shares of common stock over a 5-year period. The program is primarily intended to minimize the dilutive effect of equity grants under various benefit related incentive compensation plans of the Company. The program may be terminated or limited at any time. Shares may be repurchased in the open market or in privately negotiated transactions in amounts the Company deems appropriate. As of September 30, 2015, a total of 387,991 shares had been repurchased for an aggregate value of $12.5 million, with no shares repurchased since the first quarter of fiscal 2012. The share repurchase program is scheduled to end on September 30, 2016.