Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

3. Earnings Per Share

Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares. When the effects are dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares, participating securities and the dilutive effect of all other stock-based compensation awards as determined under the treasury stock method. Certain stock options and stock issuable under employee compensation plans were excluded from the computation of earnings per share due to their anti-dilutive effect.

A reconciliation of shares used in calculating basic and diluted earnings per share is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(thousands of shares)	2012		2011		2012		2011
Basic weighted average shares outstanding		111,239		122,991		113,460		122,212
Effect of common stock equivalents-stock options and non-vested stock under employee compensation plans		973		981		1,162		2,126
Diluted weighted average shares outstanding		112,212		123,972		114,622		124,338
Weighted average anti-dilutive common stock equivalents		4,486		6,706		5,234		4,514

We compute earnings per share on a diluted basis using the diluted weighted average shares outstanding as the denominator except in periods where losses are presented because the effects of common stock equivalents are anti-dilutive.

On October 25, 2011, the Board of Directors of the Company authorized a share repurchase program of up to $250 million. Under the share repurchase program, shares of common stock will be purchased on the open market or through privately negotiated transactions from time-to-time through April 2013. The timing and amount of purchases will be based on market conditions, corporate and legal requirements and other factors. The share repurchase program does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended, extended or discontinued at any time without prior notice. From the date of the inception of the repurchase program through September 30, 2012, the Company repurchased 13,986,349 shares for a total repurchase price of $107,304 at an average price of $7.67 per share.