EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

6. EARNINGS PER SHARE (EPS)

Basic earnings per common share excludes dilution and is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding (which includes shares outstanding, less performance and non-vested shares for which vesting criteria have not been met) plus deferred stock awards, weighted for the period outstanding. Diluted earnings per common share is computed by dividing net earnings available to common stockholders by the sum of the weighted-average number of common shares outstanding for the period adjusted (i.e., increased) for all additional common shares that would have been outstanding if potentially dilutive common shares had been issued and any proceeds of the issuance had been used to repurchase common stock at the average market price during the period. Under this method, an increase in the fair market value of the Company’s stock can result in a greater dilutive effect from potentially dilutive common shares. The proceeds are assumed to be the sum of the amount to be paid to the Company upon exercise of options, the amount of compensation cost attributed to future services and not yet recognized, and the amount of income taxes that would be credited to or deducted from capital upon exercise.

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2013, 2012 and 2011 (in thousands, except net earnings in millions and per share amounts):

Years ended December 31,	2013		2012		2011
Numerator:
Earnings from continuing operations	$	171.7	$	75.7	$	57.5
Earnings from discontinued operations, net of tax	1.8		99.2		128.4
Net earnings attributable to Cytec Industries Inc.	$	173.5	$	174.9	$	185.9
Denominator:
Weighted average shares outstanding	39,419		46,034		48,449
Effect of dilutive shares:
Options and stock-settled SARS	654		623		466
Non-vested shares and units	111		129		88
Diluted average shares outstanding	40,184		46,786		49,003
Basic earnings per common share:
Earnings from continuing operations	$	4.36	$	1.64	$	1.19
Earnings from discontinued operations	0.04		2.16		2.65
Net earnings per common share attributable to Cytec Industries Inc.	$	4.40	$	3.80	$	3.84
Diluted earnings per common share:
Earnings from continuing operations	$	4.27	$	1.62	$	1.17
Earnings from discontinued operations	0.04		2.12		2.62
Net earnings per common share attributable to Cytec Industries Inc.	$	4.31	$	3.74	$	3.79

The following table sets forth the anti-dilutive shares/units excluded from the above calculations because their inclusion would have had an anti-dilutive effect on earnings per share (in thousands):

Years ended December 31,	2013	2012	2011
Options	115	250	852
Stock-settled SARS	—	—	1,138
Non-vested shares and units	—	—	—
Total	115	250	1,990