Income Per Common Share

12 Months Ended

Dec. 31, 2012

Income Per Common Share

Income Per Common Share

2. Income Per Common Share

The following table sets forth basic and diluted net income per common share and the basic weighted average shares outstanding and diluted weighted average shares outstanding (in thousands, except per share data):

	Year ended December 31,
	2012		2011		2010
Net income	$	30,928	$	127,987	$	361,760
Income from continuing operations per common share:
Basic	$	0.80	$	3.23	$	9.16
Diluted	$	0.79	$	3.11	$	8.51
Basic weighted average shares outstanding		38,477		39,658		39,499
Dilutive effect of stock options, restricted stock awards and units and convertible debt		574		1,497		3,015
Diluted weighted average shares outstanding		39,051		41,155		42,514

Basic income per common share is computed using the basic weighted average number of common shares outstanding during the period. Diluted income per common share is computed using the basic weighted average number of common shares and common equivalent shares outstanding during the period. Potentially dilutive securities attributable to outstanding stock options and restricted stock of approximately 1.3 million, 0.7 million and 0.3 million common equivalent shares during the years ended December 31, 2012, 2011 and 2010 were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive.

During the second quarter of 2011 the entire outstanding principal balance of our convertible debt was converted, with the principal amount paid in cash and the conversion premium paid in shares. The convertible notes met the criteria for determining the effect of the assumed conversion using the treasury stock method of accounting, since we had settled the principal amount of the notes in cash. Using the treasury stock method, it was determined that the impact of the assumed conversion for the years ended December 31, 2011 and 2010 had a dilutive effect of 0.6 million shares and 1.2 million shares, respectively.