Earnings per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings per Common Share

Note 5. Earnings per Common Share

Earnings per common share, basic, is computed by dividing net income less preferred stock dividends (i.e., net income allocable to common shareholders) by the weighted-average number of common shares outstanding for the period.

Earnings per common share, diluted, is computed by dividing net income adjusted for preferred stock dividends and the interest on the convertible notes by the weighted-average number of common shares - diluted. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with Accounting Standards Codification (“ASC”) Topic 260, “Earnings per Share.” Dilutive securities include the common stock equivalents of convertible preferred stock and convertible notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units granted to employees and non-employee directors (see Note 13). There were no shares outstanding of the Company's Series B Cumulative Perpetual Convertible Preferred Stock as of March 31, 2014 (see Note 4).

Weighted-average common shares outstanding-diluted is the same as weighted-average common shares outstanding-basic in periods when a net loss is reported or in periods when diluted earnings per share is higher than basic earnings per share.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended   March 31,
	2014		2013
Earnings per common share—basic
Net income	$	55,312	$	41,660
Less: Preferred stock dividends	—		783
Net income allocable to common shareholders	$	55,312	$	40,877
Weighted-average common shares outstanding—basic	77,370		71,060
Basic earnings per common share	$	0.71	$	0.58
Earnings per common share—diluted
Net income	55,312		$	41,660
Less: Preferred stock dividends	—		783
Add: Interest on convertible debt, net of tax	1,236		1,209
Net income including assumed conversions	$	56,548	$	42,086
Weighted-average common shares outstanding—basic	77,370		71,060
Convertible notes weighted-average shares outstanding	15,000		15,000
Preferred stock weighted-average shares outstanding	—		5,924
Options and restricted stock	802		213
Weighted-average common shares outstanding—diluted	93,172		92,197
Dilutive earnings per common share	$	0.61	$	0.47

For the three months ended March 31, 2014 and 2013, securities outstanding totaling approximately 1,135,000 and 5,979,000 shares, respectively, comprised of options and restricted stock, have been excluded from the calculation of earnings per common share - diluted as their effect would be antidilutive.