ODYSSEY RE HOLDINGS CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued 8. EARNINGS PER SHARE Net income per common shar for the years ended December 31, 2004, 2003 and 2002 has been computed in the following table based upon weighted average common shares outstanding and includes the effect of implementing EITF 4-08 on a retroactive basis (in thousands, except share amounts): 2004 2003 2002 Income before cumulative effect of a change in  accounting principle $ 186,899 $ 249,225 $ 171,315 Cumulative effect of a change in accounting principle — — 36,862 Basic Earnings per Common Share Net income available to stockholders 186,899 249,225 208,177 Effect of Dilutive Securities 4.375%  Convertible Senior Debentures interest, net of tax 3,128 3,128 1,740 Diluted Earnings per Common Share Income available to common stockholders and assumed conversions $ 190,027 $ 252,353 $ 209,917 Weighted average common shares outstanding — basic 64,361,535 64,736,830 64,744,067 Effect of dilutive shares: 4.375% Convertible Senior Debentures 5,168,405 5,169,175 2,789,938 Stock options 167,620 50,649 — Incremental value of restricted stock 295,576 322,813 385,659 Total effect of dilutive shares 5,631,601 5,542,637 3,175,597 Weighted average common shares outstanding — dilutive 69,993,136 70,279,467 67,919,664 Earnings per common share: Basic: Income before cumulative effect of a change  in accounting principle $ 2.90 $ 3.85 $ 2.65 Cumulative effect of a change in accounting principle — — 0.57 Basic earnings per common share $ 2.90 $ 3.85 $ 3.22 Diluted: Income before cumulative effect of a change  in accounting principle $ 2.71 $ 3.59 $ 2.55 Cumulative effect of a change in accounting principle — — 0.54 Diluted earnings per common share $ 2.71 $ 3.59 $ 3.09 65