Financial Information
4. EARNINGS PER SHARE
The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:
We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We have excluded the following antidilutive stock options and stock appreciation rights in our calculation of diluted earnings per share because their exercise prices were greater than the average market prices for the applicable periods:
(a) for 2014, zero options and stock appreciation rights;
(b) for 2013, 0.4 million options and stock appreciation rights; and
(c) for 2012, 1.0 million options and stock appreciation rights.