Earnings per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings per Share

From July 2006 through September 2008, the Company had two classes of outstanding capital stock, common stock and Series B preferred stock. The Series B preferred stock, which was issued in connection with the acquisition of Manugistics in 2006, was a participating security such that in the event a dividend was declared or paid on the common stock, the Company would be required to simultaneously declare and pay a dividend on the Series B preferred stock as if the Series B preferred stock had been converted into common stock. Companies that have participating securities are required to apply the two-class method to compute basic earnings per share. Under the two-class computation method, basic earnings per share is calculated for each class of stock and participating security considering both dividends declared and participation rights in undistributed earnings as if all such earnings had been distributed during the period.

During third quarter 2009, all shares of the Series B preferred stock were either converted into shares of common stock or repurchased for cash, including $8.6 million paid in excess of the conversion price. The excess consideration was charged to retained earnings in the same manner as a dividend on preferred stock and reduced the income applicable to common shareholders in the calculation of earnings per share for 2009. The calculation of diluted earnings per share applicable to common shareholders for 2009 includes the assumed conversion of the Series B preferred stock into common stock as of the beginning of the period, weighted for the actual days and number of shares outstanding during the period.

Earnings per share for the three years ended December 31, 2011 is calculated as follows:

	Year Ended December 31,
	2011		2010		2009
Net income	$	82,688	$	2,141	$	27,575
Consideration paid in excess of carrying value on the repurchase of redeemable preferred stock	—		—		(8,593		)
Income applicable to common shareholders	82,688		2,141		18,982
Undistributed earnings:
Common stock	82,688		2,141		17,770
Series B preferred stock	—		—		1,212
Total undistributed earnings	$	82,688	$	2,141	$	18,982
Weighted-average shares:
Common stock	42,412		41,173		32,706
Series B preferred stock	—		—		2,230
Shares — basic earnings per share	42,412		41,173		34,936
Dilutive common stock equivalents	349		537		322
Shares — diluted earnings per share	42,761		41,710		35,258
Basic earnings per share applicable to common shareholders:
Common stock	$	1.95	$	0.05	$	0.54
Series B preferred stock	$	—	$	—	$	0.54
Diluted earnings per share applicable to common shareholders	$	1.93	$	0.05	$	0.54

The dilutive effect of outstanding stock options and unvested restricted stock units and performance share awards is included in the diluted earnings per share calculations using the treasury stock method. In addition, contingently issuable restricted stock units or performance share awards for which all necessary conditions had not been met have been excluded from the calculation (see Note 15). Diluted earnings per share applicable to common shareholders excludes vested options for the purchase of common stock that have grant prices in excess of the average market price, or which are otherwise anti-dilutive. During 2011, 2010 and 2009, approximately, 3,000, 12,000 and 795,000 stock options and restricted stock-based awards, respectively, were excluded from the calculation of diluted earnings per share applicable to common shareholder calculations, as these shares relate to anti-dilutive stock options and restricted stock -based awards as calculated using the treasury stock method and could be dilutive in the future.

Earnings per Share

From July 2006 through September 2008, the Company had two classes of outstanding capital stock, common stock and Series B preferred stock. The Series B preferred stock, which was issued in connection with the acquisition of Manugistics in 2006, was a participating security such that in the event a dividend was declared or paid on the common stock, the Company would be required to simultaneously declare and pay a dividend on the Series B preferred stock as if the Series B preferred stock had been converted into common stock. Companies that have participating securities are required to apply the two-class method to compute basic earnings per share. Under the two-class computation method, basic earnings per share is calculated for each class of stock and participating security considering both dividends declared and participation rights in undistributed earnings as if all such earnings had been distributed during the period.

During third quarter 2009, all shares of the Series B preferred stock were either converted into shares of common stock or repurchased for cash, including $8.6 million paid in excess of the conversion price. The excess consideration was charged to retained earnings in the same manner as a dividend on preferred stock and reduced the income applicable to common shareholders in the calculation of earnings per share for 2009. The calculation of diluted earnings per share applicable to common shareholders for 2009 includes the assumed conversion of the Series B preferred stock into common stock as of the beginning of the period, weighted for the actual days and number of shares outstanding during the period.