
7.	Earnings (Loss) per Common Share

Basic earnings (loss) per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows for the three and six months ended June 30, 2011 and 2010.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011		2010

Numerator:
Net income (loss) from continuing operations	$	(17,130	)	$	344,772		$	159,294	$	591,526
Less: preferred stock dividends		4,052			18,711			7,930		37,389

Net income (loss) from continuing operations attributable to common stock		(21,182	)		326,061			151,364		554,137
Adjusted for dividends of Series C Preferred Stock⁽¹⁾		—			14,688			—		29,376

Net income (loss) from continuing operations attributable to common stock, adjusted		(21,182	)		340,749			151,364		583,513
Income (loss) from discontinued operations		11,482			(6,954	)		9,752		(13,568	)

Net income (loss) attributable to common stock, adjusted	$	(9,700	)	$	333,795		$	161,116	$	569,945

Denominator (shares in thousands):
Weighted average shares used to compute basic EPS		523,808			484,832			525,269		484,547
Effect of dilutive securities:
Dilutive effect of Series C Preferred Stock⁽¹⁾		—			41,240			—		41,240
Dilutive effect of stock options, non-vested deferred compensation and restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”)⁽²⁾		—			1,319			5,596		1,226

Dilutive potential common shares⁽³⁾		—			42,559			5,596		42,466

Weighted average shares used to compute diluted EPS		523,808			527,391			530,865		527,013

Basic earnings (loss) per common share:
Continuing operations	$	(.04	)	$	.67		$	.29	$	1.15
Discontinued operations		.02			(.01	)		.02		(.03	)

Total	$	(.02	)	$	.66		$	.31	$	1.12

Diluted earnings (loss) per common share:
Continuing operations	$	(.04	)	$	.64		$	.28	$	1.11
Discontinued operations		.02			(.01	)		.02		(.03	)

Total	$	(.02	)	$	.63		$	.30	$	1.08


⁽¹⁾		Our 7.25 percent mandatory convertible preferred stock Series C was issued on December 31, 2007. The Series C Preferred Stock was fully converted to common shares on December 15, 2010.

⁽²⁾		Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, non-vested deferred compensation and restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method.

⁽³⁾		For the three months ended June 30, 2011 and 2010, stock options covering approximately 33 million and 17 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2011 and 2010, stock options covering approximately 13 million and 17 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.