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Earnings Per Share
 9 Months Ended
Sep. 30, 2015
Earnings Per Share [Abstract]  
Earnings Per Share
Note 13: Earnings Per Share

Beginning in the first quarter of 2015, we began applying the two-class method of calculating basic and diluted earnings per share (the “Two-Class Method”) as it became significantly more dilutive than the previously applied treasury stock method as a result of stock repurchases increasing the average number of unvested restricted awards as a percentage of total common shares outstanding.
The Two-Class Method is an earnings allocation formula that treats a participating security, as having rights to earnings that otherwise would have been available to common shareholders and assumes all earnings for the period are distributed. Our unvested restricted stock awards granted are participating securities as they entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock.
Our calculation of basic and diluted earnings per share is as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
In thousands, except per share data
2015
 
2014
 
2015
 
2014
Numerator
 
 
 
 
 
 
 
Income from continuing operations
$
37,592

 
$
22,123

 
$
32,396

 
$
73,562

Loss from discontinued operations, net of tax
(256
)
 
(4,233
)
 
(5,077
)
 
(10,744
)
Net income
$
37,336

 
$
17,890

 
$
27,319

 
$
62,818

 
 
 
 
 
 
 
 
Income from continuing operations
$
37,592

 
$
22,123

 
$
32,396

 
$
73,562

Dividends and undistributed income allocated to participating shares
(1,130
)
 
(739
)
 
(905
)
 
(2,294
)
Income from continuing operations to common shares - basic
36,462

 
21,384

 
31,491

 
71,268

Effect of reallocating undistributed income from continuing operations to participating shares
—

 
8

 
—

 
41

Income from continuing operations to common shares - diluted
$
36,462

 
$
21,392

 
$
31,491

 
$
71,309

 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted average common shares - basic
17,220

 
18,798

 
17,775

 
20,792

Dilutive effect of share-based payment awards
9

 
53

 
14

 
87

Dilutive effect of convertible debt
—

 
170

 
—

 
307

Weighted average common shares - diluted(1)
17,229

 
19,021

 
17,789

 
21,186

 
 
 
 
 
 
 
 
Basic earnings (loss) per common share:
 
 
 
 
 
 
 
Continuing operations
$
2.12

 
$
1.14

 
$
1.77

 
$
3.43

Discontinued operations
(0.02
)
 
(0.23
)
 
(0.28
)
 
(0.52
)
Basic earnings per common share
$
2.10

 
$
0.91

 
$
1.49

 
$
2.91

 
 
 
 
 
 
 
 
Diluted earnings (loss) per common share:
 
 
 
 
 
 
 
Continuing operations
$
2.12

 
$
1.12

 
$
1.77

 
$
3.37

Discontinued operations
(0.02
)
 
(0.22
)
 
(0.29
)
 
(0.51
)
Diluted earnings per common share
$
2.10

 
$
0.90

 
$
1.48

 
$
2.86

 
 
 
 
 
 
 
 
Stock options and share-based awards not included in diluted EPS calculation because their effect would have be antidilutive
12

 
226

 
1

 
16

(1)
Participating securities were included in the calculation of diluted earnings per share using the two-class method, as this calculation was more dilutive than the calculation using the treasury stock method.