EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Earnings per share (“EPS”) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends.  The Company grants restricted stock to certain employees under its stock-based compensation program, which entitles recipients to receive non-forfeitable cash dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock.  These unvested awards meet the definition of participating securities. In accordance with ASC 260, “Earnings Per Share,” the two-class method has been applied to all periods presented.

Basic EPS is calculated using the weighted average number of common shares outstanding during the period. Diluted EPS assumes the exercise of all options. Options issued under the stock-based compensation program that have an antidilutive effect are excluded from the computation of diluted EPS. Potential common stock equivalents to purchase 2.4 million and 7.5 million shares for the quarters ended March 31, 2013 and 2012, respectively, were excluded from the computation of diluted earnings per common share because the potential common stock equivalents were antidilutive. 

The table below provides the reconciliation of the earnings and number of shares used in the Company's calculations of basic and diluted earnings per share. 

	Quarters Ended March 31,
	2013			2012
(in thousands, except for per share data)
Basic earnings per common share
Net Earnings	$	135,369		$	170,719
Less: Distributed and undistributed earnings allocated to participating securities	(1,155		)	(2,472		)
Net earnings allocable to common shares	$	134,214		$	168,247
Basic weighted average common shares outstanding	133,464			139,323
Basic earnings per common share	$	1.01		$	1.21
Diluted earnings per common share
Net Earnings	$	135,369		$	170,719
Less: Distributed and undistributed earnings allocated to participating securities	(1,149		)	(2,459		)
Net earnings allocable to common shares	$	134,220		$	168,260
Basic weighted average common shares outstanding	133,464			139,323
Effect of dilutive options	836			844
Diluted weighted average common shares outstanding	134,300			140,167
Diluted earnings per common share	$	1.00		$	1.20