NET INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2012

NET INCOME PER COMMON SHARE

NOTE 3 — NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income, after deducting preferred share dividends and adjusting for the impact of unvested stock awards deemed to be participating securities, by the weighted average number of common shares outstanding, calculated excluding unvested stock awards. Diluted net income per common share is computed by dividing net income, after deducting dividends on convertible preferred shares when such shares are antidilutive and similar adjustments for participating securities, by the weighted average number of common shares and common share equivalents outstanding calculated excluding unvested stock awards, giving effect to equity awards and convertible preferred shares when such awards and shares are dilutive. For calculation purposes the Series A and B preferred shares are considered dilutive whenever basic net income per common share exceeds each Series’ dividend divided by the conversion rate applicable for that period. Unvested stock awards that are deemed participating securities are included in the calculation of diluted net income per common share, if dilutive, under either the two class method or the treasury stock method, depending upon which method produces the more dilutive result. Components of the computation of basic and diluted net income per common share were as follows (dollars in thousands, except per share amounts):

	Year Ended December 31
	2012			2011			2010
Basic net income per common share
Numerator for basic net income per common share:
Net income	$	163,626		$	160,204		$	126,896
Series A and B preferred share dividends		(21,021	)		(20,369	)		(20,233	)
Unvested stock award participation in earnings		(372	)		(579	)		(594	)
	$	142,233		$	139,256		$	106,069
Denominator for basic net income per common share:
Weighted average common shares outstanding		95,115			79,784			69,948
Average unvested stock awards outstanding		(522	)		(468	)		(396	)
		94,593			79,316			69,552
	$	1.50		$	1.76		$	1.53
Diluted net income per common share
Numerator for diluted net income per common share:
Net income	$	163,626		$	160,204		$	126,896
Dividends on antidilutive convertible preferred shares		(20,723	)		(20,071	)		(19,932	)
Unvested stock award participation in earnings		(372	)		(579	)		(594	)
	$	142,531		$	139,554		$	106,370
Denominator for diluted net income per common share:
Weighted average common shares outstanding		95,115			79,784			69,948
Average unvested stock awards outstanding		(522	)		(468	)		(396	)
Net effect of dilutive stock and option awards		111			71			39
Net effect of dilutive convertible preferred shares		308			309			310
		95,012			79,696			69,901
	$	1.50		$	1.75		$	1.52

Potentially dilutive securities excluded from the computation of net income per share because the effect of inclusion was antidilutive during the indicated periods were as follows (in thousands):

	Year Ended December 31
	2012		2011		2010
Antidilutive convertible preferred shares		16,493		16,184		15,819
Antidilutive equity awards excludable under the treasury stock method:
Shares issuable under option awards		10		40		40
Unvested stock awards		—		—		240