Income per Common Share
 3 Months Ended
Mar. 31, 2015
Income per Common Share  
Income per Common Share

7.  Income per Common Share

 

Holdings applies the two-class method for calculating and presenting income per common share. The two-class method is an earnings allocation formula that determines earnings per share for each class of stock participation rights in undistributed earnings. The following table sets forth for the periods indicated the calculation of income per common share in Holdings’ consolidated statement of operations and the differences between basic weighted average shares outstanding and diluted weighted average shares outstanding used to compute basic and diluted income per common share, respectively:

 

 

 

For the Three Months Ended March 31,

 

 

 

2014

 

2015

 

 

 

(in thousands, except per share amounts)

 

Numerator:

 

 

 

 

 

Net income attributable to Select Medical Holdings Corporation

 

$
33,044 

 

$
35,063 

 

Less: Earnings allocated to unvested restricted stockholders

 
770 

 
973 

 

Net income available to common stockholders

 

$
32,274 

 

$
34,090 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

Weighted average shares — basic

 
135,540 

 
127,565 

 

Effect of dilutive securities:

 

 

 

 

 

Stock options

 
413 

 
307 

 

Weighted average shares — diluted

 
135,953 

 
127,872 

 

 

 

 

 

 

 

Basic income per common share

 

$
0.24 

 

$
0.27 

 

Diluted income per common share

 

$
0.24 

 

$
0.27