Kaman

AR 13

Financials

Part II

Financials/Financial Statements and Supplementary Data/Notes to Consolidated Financial Statements – Note 18

For the Years Ended December 31, 2013, 2012 and 2011

18. COMPUTATION OF EARNINGS PER SHARE

The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each year. The computation of diluted earnings per share includes the common stock equivalency of dilutive options granted to employees under the Stock Incentive Plan.

Excluded from the diluted earnings per share calculation for the years ended December 31, 2013, 2012 and 2011, respectively, are 391,717, 338,248 and 265,026 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price.

For the years ended December 31, 2013, 2012 and 2011, shares issuable under the Convertible Notes that were dilutive during the period were included in the calculation of earnings per share as the conversion price for the Convertible Notes was less than the average share price of the Company's stock. Excluded from the diluted earnings per share calculation for the years ended December 31, 2013, 2012 and 2011, respectively were 3,404,626, 3,396,841, and 3,386,739 shares, issuable under the warrants sold in connection with the Company's Convertible Note offering as they would be anti-dilutive. For further information on the Convertible Notes, see Note 12, Debt.

For the year ended December 31,
2013 2012 2011
In thousands, except per share amounts
Earnings from continuing operations $ 56,699 $ 53,928 $ 49,928
Earnings from discontinued operations, net of tax (19) (226) 1,214
Gain on disposal of discontinued operations, net of tax 420 1,323
Net earnings $ 57,100 $ 55,025 $ 51,142
Basic:
Weighted average number of shares outstanding 26,744 26,425 26,246
 
Earnings per share from continuing operations $ 2.12 $ 2.04 $ 1.90
Earnings per share from discontinued operations (0.01) 0.05
Earnings per share from disposal of discontinued operations 0.02 0.05
Basic earnings per share $ 2.14 $ 2.08 $ 1.95
Diluted:
Weighted average number of shares outstanding 26,744 26,425 26,246
Weighted average shares issuable on exercise of dilutive stock options 159 162 223
Weighted average shares issuable on exercise of convertible notes 240 35 31
Total 27,143 26,622 26,500
 
Earnings per share from continuing operations $ 2.09 $ 2.03 $ 1.88
Earnings per share from discontinued operations (0.01) (0.01) 0.05
Earnings per share from disposal of discontinued operations 0.02 0.05
Diluted earnings per share $ 2.10 $ 2.07 $ 1.93