Cash America 2014 Annual Report Download - page 107

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
92
Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted average number of
common shares outstanding during the year. Diluted net income per share is calculated by giving effect to the
potential dilution that could occur if securities or other contracts to issue common shares were exercised and
converted into common shares during the year. When a net loss exists, all potentially dilutive securities are anti-
dilutive and are therefore excluded from the diluted per-share computation.
RSU issued under the Company’s stock-based employee compensation plans are included in diluted shares
from the grant date of the award. Performance-based RSU awards are included in diluted shares based on the level
of performance that management estimates is the most probable outcome at the grant date. Throughout the requisite
service period, management monitors the probability of achievement of the performance condition and adjusts the
number of shares included in diluted shares accordingly.
The following table sets forth the reconciliation of numerators and denominators of basic and diluted
earnings per share computations for the years ended December 31, 2014, 2013 and 2012 (dollars and shares in
thousands, except per share amounts):
For the year ended December 31,
2014 2013 2012
Numerator:
Net (Loss) Income from Continuing Operations $
(10,387
)$59,182 $40,901
Net Income from Discontinued Operations, Net of Tax 109,025 83,346 66,569
Net Income Attributable to Cash America International, Inc. 98,638
142,528
107,470
Denominator:
Total Weighted Average Basic Shares (a) 28,901 28,657 29,514
Shares Applicable to Stock-based Compensation(b) 92
72
174
Convertible Debt(c) 348 1,884 1,764
Total Weighted Average Diluted Shares (d) 29,341 30,613 31,452
Net (Loss) Income from Continuing Operations – basic $(0.36)$2.07 $
1.39
Net Income from Discontinued Operations – basic $
3.77
$2.91 $
2.26
Net Income Attributable to Cash America International, Inc. - basic $
3.41
$4.97 $
3.64
Net (Loss) Income from Continuing Operations – diluted $(0.36)$1.93 $
1.30
Net Income from Discontinued Operations – diluted $
3.72
$2.72 $
2.12
Net Income Attributable to Cash America International, Inc. - diluted $
3.36
$4.66 $
3.42
(a) Includes vested and deferred RSUs of 304, 307 and 287, as well as Director Deferred Shares of 32, 31 and 31 for the years ended
December 31, 2014, 2013 and 2012, respectively.
(b) Includes shares related to unvested RSU awards. Although there were no stock option awards outstanding as of December 31, 2012, the
dilutive effect of stock-based compensation is based on the weighted amount of outstanding awards during the year; therefore, the
portion of the stock option awards that were outstanding and exercisable during 2012 are included in calculating this amount for 2012.
(c) On May 15, 2014, the Company called the 2029 Convertible Notes, and the noteholders elected to convert such notes. The Company
settled the principal portion of the outstanding 2029 Convertible Notes in cash and issued 747,085 of the Company’s common shares
related to the conversion spread. Prior to the repayment of the 2029 Convertible Notes, only the shares related to the conversion spread
were included in weighted average diluted shares because the Company intended to pay the principal portion of the notes in cash. See
Note 11 for further discussion of the 2029 Convertible Notes.
(d) Excludes 70 and 12 anti-dilutive shares for the years ended December 31, 2014 and 2013. There were no anti-dilutive shares for the year
ended December 31, 2012. When a net loss exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the
diluted per-share computation.