Earnings Per Share

Basic and diluted earnings per share were calculated as follows, for each period presented:



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	15.9	$	25.4	$	56.2	$	77.5
Denominator — Weighted-average common shares outstanding (in thousands):
Basic¹	17,707		18,548		17,853		18,915
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares	134		165		143		167
Add: dilutive effect of warrants	778		345		596		185
Diluted²	18,619		19,058		18,592		19,267
Earnings per common share, Basic:
Net income per share	$	0.90	$	1.37	$	3.15	$	4.09
Earnings per common share, Diluted:
Net income per share	$	0.85	$	1.34	$	3.02	$	4.02

______________________


¹	The basic weighted-average number of common shares outstanding during the period excludes non-vested common shares, restricted stock units, performance shares and market-based shares.


²	The diluted weighted-average number of common shares outstanding during the periods were calculated using the treasury method.

There were 18,606 and 20,791 fully-vested options outstanding as of September 30, 2014 and December 31, 2013, respectively, in each case exercisable to purchase common shares at $80.01 per share. The number of potentially dilutive stock options were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive for each of the periods presented.

Warrants relating to approximately 3.7 million and 3.6 million common shares were outstanding at September 30, 2014 (at which date the exercise price was approximately $60.80 per share) and September 30, 2013 (at which date the exercise price was approximately $61.14 per share), respectively.

During the nine months ended September 30, 2014 and September 30, 2013, the Company paid approximately $19.1 ($1.05 per common share) and $17.3 ($0.90 per common share), respectively, in cash dividends to stockholders, including the holders of non-vested common shares, and dividend equivalents to the holders of certain restricted stock units and to the holders of performance shares with respect to approximately one-half of the performance shares. Additionally, during the nine months ended September 30, 2013, $0.6 of cash dividends paid in respect of common shares of the Company held in trust by a third-party were returned to the Company (see Note 13).

From time to time, the Company repurchases shares pursuant to a stock repurchase program authorized by the Company’s Board of Directors. Repurchase transactions will occur at such times and prices as management deems appropriate and will be funded with the Company’s excess liquidity after giving consideration to internal and external growth opportunities and future cash flows. Repurchases may be in open-market transactions or in privately negotiated transactions, and the program may be modified or terminated by the Company’s Board of Directors at any time.

During the nine months ended September 30, 2014 and September 30, 2013, the Company repurchased 410,589 shares of common stock (at a weighted-average price of $70.34 per share) and 707,077 shares of common stock (at a weighted-average price of $62.14 per share), respectively, pursuant to the stock repurchase program. The total cost of $28.9 and $43.9 was recorded as Treasury Stock at September 30, 2014 and September 30, 2013, respectively. At September 30, 2014 and December 31, 2013, $88.7 and $117.6, respectively, were available to repurchase the Company’s common shares pursuant to the stock repurchase program.