MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Earnings Per Share Subsequent events  Stock Split  Recently Issued accounting Standards  Comprehensive Income  Presentation of Unrecognized Tax Benefits  Note 2. Stock-Based Compensation The benefits of tax deductions in excess of the tax benefit from compensation costs that were recognized or would have  been recognized are classified as financing inflows on the consolidated statement of cash flows. Net income for years ended 2013, 2012 and 2011 include $2.8 million, $2.0 million and $2.7 million pre-tax  compensation costs, respectively, related to stock option expense as a component of marketing and administrative expenses. All stock option expense is recognized in the consolidated statements of operations. The related tax benefit included in the  statement of income on the non-qualified stock options was $1.1  million, $0.8 million and $1.1 million for 2013, 2012 and  2011, respectively.  Stock-based compensation expense is recognized in the consolidated financial statements for stock options based on the  grant date fair value. The Company has a 2001 Stock Award and Incentive Plan (the "Plan"), which provides for grants of incentive and non- qualified stock options, restricted stock, stock appreciation rights, stock awards or performance unit awards. The Plan is  administered by the Compensation Committee of the Board of Directors. Stock options granted under the Plan generally have  a ten year term. The exercise price for stock options are at prices at or above the fair market value of the common stock on  the date of the grant, and each award of stock options will vest ratably over a specified period, generally three years.  In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes: Presentation of an Unrecognized Tax Benefit When a  Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which improves the reporting of  unrecognized tax benefits. This ASU requires an entity to present an unrecognized tax benefit as a reduction to deferred tax  assets for NOLs or tax credit carryforwards, unless the NOL or tax credit carryforward is not available under the tax law or  not intended to be used as of the reporting date to settle any additional income taxes that would be due from the disallowance  of a tax position. Under that exception, the unrecognized tax benefit should be presented as a liability instead of being netted  against deferred tax assets for NOLs or tax credit carryforwards. This ASU is effective for fiscal quarters and years beginning  after December 15, 2013. The Company is currently evaluating the impact of adopting ASU No. 2013-11 on the Company’s  Consolidated Balance Sheet. In February 2012, the FASB issued ASU No. 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified Out  of Accumulated Other Comprehensive Income (“AOCI”)” which improves the reporting of reclassifications out of AOCI.  This ASU requires an entity to report the effect of significant reclassifications out of AOCI on the respective line items in net  income. For other amounts not required to be reclassified to net income, an entity is required to cross-reference other  disclosures required under U.S. GAAP that provide additional detail about these amounts. This ASU became effective  January 1, 2013 and the effect of adopting this updated guidance did not have an impact on the Company’s financial position  or results of operations.  On November 14, 2012  the Company’ s Board of Directors authorized a two-for-one stock split of the  of the Company’s  outstanding common stock, which was effected in the form of a 100-percent stock distribution payable on December 11,  2012 to shareholders of record on November 27, 2012. Treasury shares were not treated as outstanding shares in the stock  split. The par- value of the Company’s stock remained at $0.10 per share. Unless otherwise noted, all share amounts and per  share calculations have been adjusted for all periods presented to reflect the impact of this split and to provide data on a  comparable basis.  The Company has evaluated for subsequent events through the date of issuance of its financial statements. Diluted earnings per share have been computed based upon the weighted average number of common shares outstanding  during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding.  Basic earnings per share have been computed based upon the weighted average number of common shares outstanding  during the period.  F-10 