EARNINGS PER SHARE

Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the year. Diluted EPS is determined in the same manner as basic EPS except that the number of shares is increased assuming exercise or contingent issuance of the options, warrants or other dilutive securities; and conversion of the convertible trust preferred securities. Additionally, when dilutive, interest expense (net of tax) related to the convertible trust preferred securities is added back to net income attributable to common shareholders. The calculation of diluted EPS excludes the potential dilution of common shares and the inclusion of any related expenses if the effect is antidilutive.

The following table is a reconciliation of the components of basic and diluted EPS computations for the three years ended December 31:



	For the year ended December 31,
	2016			2015			2014
	(In thousands, except share and per share data)
Basic earnings per share - Numerator:
Net income from continuing operations	$	70,244		$	62,921		$	67,405
Less: Net income attributable to noncontrolling interests	4,157			4,407			4,750
Net income from continuing operations attributable to the Company	66,087			58,514			62,655
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(588		)	464			(525		)
Dividends on preferred stock	(3,475		)	(3,475		)	(3,475		)
Total adjustments to income attributable to common shareholders	(4,063		)	(3,011		)	(4,000		)
Net income from continuing operations attributable to common shareholders, treasury stock method (2)	62,024			55,503			58,655
Net income from discontinued operations (2)	5,541			6,411			6,160
Net income attributable to common shareholders, treasury stock method (2)	$	67,565		$	61,914		$	64,815

Basic earnings per share - Denominator:
Weighted average basic common shares outstanding	81,264,273			80,885,253			78,921,480
Per share data - Basic earnings per share from:
Continuing operations	$	0.76		$	0.69		$	0.74
Discontinued operations	$	0.07		$	0.08		$	0.08
Total attributable to common shareholders	$	0.83		$	0.77		$	0.82



	For the year ended December 31,
	2016		2015		2014
	(In thousands, except share and per share data)
Diluted earnings per share - Numerator:
Net income from continuing operations attributable to common shareholders, after assumed dilution (2)	$	62,024	$	55,503	$	58,655
Net income from discontinued operations	5,541		6,411		6,160
Net income attributable to common shareholders, after assumed dilution	$	67,565	$	61,914	$	64,815
Diluted earnings per share - Denominator:
Weighted average basic common shares outstanding	81,264,273		80,885,253		78,921,480
Dilutive effect of:
Stock options and non-participating performance-based and certain time-based restricted stock (2), (3)	1,002,153		1,301,448		1,188,051
Warrants to purchase common stock (3)	942,700		1,206,389		1,198,613
Dilutive common shares	1,944,853		2,507,837		2,386,664
Weighted average diluted common shares outstanding (2), (3)	83,209,126		83,393,090		81,308,144
Per share data - Diluted earnings per share from:
Continuing operations	$	0.74	$	0.66	$	0.72
Discontinued operations	$	0.07	$	0.08	$	0.08
Total attributable to common shareholders	$	0.81	$	0.74	$	0.80
Dividends per share declared and paid on common stock	$	0.40	$	0.36	$	0.32

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(1)

See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption values from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.

(2)

The Company presents its EPS based on the treasury stock method. The Company reverted to the treasury stock presentation from the two-class presentation due to the immaterial number of participating shares outstanding as of March 31, 2016. If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the year ended December 31, 2016.

Net income attributable to common shareholders would have been reduced by an additional $4 thousand, for the year ended December 31, 2016. The allocation of net income to participating securities would have been $8 thousand for the year ended December 31, 2016, reducing net income attributable to common shareholders by a total of $12 thousand for the same period. Basic EPS would not change. Weighted average diluted shared outstanding would have been reduced by 7,185 shares for the year ended December 31, 2016. Diluted EPS would not change.

If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the year ended December 31, 2015. Net income attributable to common shareholders would have been reduced by an additional $90 thousand for the year ended December 31, 2015, and the allocation of net income to participating securities would have been $92 thousand for the same period, reducing net income attributable to common shareholders by a total of $182 thousand, for the same period. Total basic EPS and basic EPS from continuing operations would each decrease by $0.01 per share for the year ended December 31, 2015. Weighted average diluted shares outstanding would have been reduced by 167,937 shares for the same period. Diluted EPS would not change.

If the EPS presentation had been based on the two-class method, the following adjustments would have been made to the presentation of EPS for the year ended December 31, 2014. Net income attributable to common shareholders would have been reduced by an additional$228 thousand for the year ended December 31, 2014, and the allocation of net income to participating securities would have been $335 thousand for the same period, reducing net income attributable to common shareholders by a total of $563 thousand, for the same period. Total basic EPS and basic EPS from continuing operations would each decrease by $0.01 per share for the year ended December 31, 2014. Weighted average diluted shares outstanding would have been reduced by 428,913 shares for the same period. Total diluted EPS and diluted EPS from discontinued operations would each decrease by $0.01 per share.


(3)	The diluted EPS computations for the years ended December 31, 2016, 2015, and 2014 do not assume the conversion, exercise or contingent issuance of the following shares for the following periods because the result would have been antidilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:



	For the year ended December 31,
	2016	2015	2014
Shares excluded due to anti-dilution (treasury method):	(In thousands)
Potential common shares from:
Convertible trust preferred securities (a)	1	1	1
Total shares excluded due to anti-dilution	1	1	1



	For the year ended December 31,
	2016	2015	2014
Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):	(In thousands)
Potential common shares from:
Options, restricted stock, or other dilutive securities (b)	270	548	829
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	270	548	829


(a)	If the effect of the conversion of the trust preferred securities would have been dilutive, an immaterial amount of interest expense, net of tax, related to the convertible trust preferred securities would have been added back to net income attributable to common shareholders for the diluted EPS computation for the years presented.

(b)

Options to purchase shares of common stock, non-participating performance- and certain time-based restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.