Net Income Per Share and Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Net Income Per Share and Stockholders' Equity

Net Income Per Share. Basic net income per share is computed by dividing distributed and undistributed net income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Diluted net income per share was calculated under the treasury stock method for 2018, 2017 and 2016, which in all years was more dilutive than the two-class method.

The following table sets forth the computation of basic and diluted net income per share for the periods presented (in millions of dollars, except share and per share amounts):



	Year Ended December 31,
	2018		2017		2016
Numerator:
Net income	$	91.7	$	45.4	$	91.7
Denominator – Weighted-average common shares outstanding (in thousands):
Basic	16,585		16,996		17,813
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares¹	289		263		220
Diluted	16,874		17,259		18,033

Net income per common share, Basic:	$	5.53	$	2.67	$	5.15
Net income per common share, Diluted:	$	5.43	$	2.63	$	5.09

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^1.	A total of 52,000 and 50,000 non-vested RSAs, RSUs and performance shares for the years ended December 31, 2017 and December 31, 2016, respectively, were excluded from the weighted-average diluted shares computation as their inclusion would have been anti-dilutive. None were excluded for the year ended December 31, 2018.

Dividends. During 2018, 2017 and 2016, we paid a total of approximately $37.7 million ($2.20 per common share), $35.0 million ($2.00 per common share) and $32.4 million ($1.80 per common share), respectively, in cash dividends to stockholders, including the holders of RSAs, and dividend equivalents to the holders of certain RSUs and performance shares.

Treasury Stock. From time to time, we repurchase shares pursuant to a stock repurchase program authorized by our Board of Directors. Repurchase transactions will occur at such times and prices as management deems appropriate and will be funded with our excess liquidity after giving consideration to, among other things, 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 our Board of Directors at any time.

Repurchases of our common stock pursuant to the stock repurchase program is recorded as Treasury stock and consisted of the following for each period presented:



	Year Ended December 31,
	2018		2017		2016
Number of common shares repurchased	617,151		938,680		443,838
Weighted-average repurchase price (dollars per share)	$	100.28	$	82.97	$	78.59
Total cost of repurchased common shares (in millions of dollars)	$	61.9	$	77.8	$	34.9

At December 31, 2018 and December 31, 2017, $148.7 million and $110.5 million, respectively, were available to repurchase our common shares pursuant to the stock repurchase program.

Preferred Stock. In connection with a tax asset protection rights plan, our Board of Directors declared a dividend, payable April 22, 2016, of one right for each outstanding share of our common stock. In general, if the rights become exercisable, each right would allow its holder to purchase one one-hundredth of a share of our Series A Preferred Stock. The authorized number of shares of Series A Preferred Stock is 900,000.