Net Income Per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE

(Thousands of dollars except per share data)	Three Months Ended March 31,
	2015			2014
Basic
Average common shares outstanding	92,740,059			98,833,210
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares	(475		)	(523		)
Net income allocated to common shares	$	130,929		$	114,934
Basic net income per common share	$	1.41		$	1.16
Diluted
Average common shares outstanding	92,740,059			98,833,210
Stock options and other contingently issuable shares (1)	2,005,070			2,025,671
Average common shares outstanding assuming dilution	94,745,129			100,858,881
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares
assuming dilution	(467		)	(515		)
Net income allocated to common shares assuming
dilution	$	130,937		$	114,942
Diluted net income per common share	$	1.38		$	1.14

⁽¹⁾  Stock options and other contingently issuable shares excluded 12,414 and 2,932 shares due to their anti-dilutive effect for the three months ended March 31, 2015 and 2014, respectively.

The Company has two classes of participating securities: common shares and restricted shares, representing 99% and 1% of outstanding shares, respectively. The restricted shares are shares of unvested restricted stock granted under the Company’s restricted stock award program. Time-based restricted shares receive non-forfeitable dividends, while dividends on performance-based restricted shares are deferred and payment is contingent upon the awards vesting. The time-based restricted shares are considered a participating security, therefore, basic and diluted earnings per share are calculated using the two-class method in accordance with the Earnings Per Share Topic of the ASC.