EARNINGS PER SHARE (EPS)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE (EPS)

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 three months ended March 31, 2014 and 2013 (in thousands, except net earnings in millions and per share amounts):

	Three Months Ended March 31,
	2014		2013
Numerator:
Earnings from continuing operations	$	55.9	$	8.7
Earnings from discontinued operations, net of tax	—		26.9
Net earnings attributable to Cytec Industries Inc.	$	55.9	$	35.6
Denominator:
Weighted average shares outstanding	35,946		45,018
Effect of dilutive shares:
Options and stock-settled SARS	587		721
Non-vested shares and units	115		114
Diluted average shares outstanding	36,648		45,853
Basic earnings per common share:
Earnings from continuing operations	$	1.55	$	0.19
Earnings from discontinued operations	—		0.60
Net earnings per common share attributable to Cytec Industries Inc.	$	1.55	$	0.79
Diluted earnings per common share:
Earnings from continuing operations	$	1.52	$	0.19
Earnings from discontinued operations	—		0.59
Net earnings per common share attributable to Cytec Industries Inc.	$	1.52	$	0.78

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

	Three Months Ended March 31,
	2014	2013
Options	128	195
Stock-settled SARS	—	—
Non-vested shares/units	—	—
Total	128	195