EPS Calculation

9 Months Ended

Sep. 30, 2011

EPS Calculation

EPS Calculation

11. EPS Calculation

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted EPS for the three and nine months ended September 30, 2011 and 2010:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In Thousands, Except Per Share Amounts)	2011			2010 (1)			2011			2010 (1)
Numerator:
Net income	$	83,699		$	77,214		$	245,850		$	208,181
Dividends declared on preferred stock	(2,040		)	(2,040		)	(6,120		)	(6,120		)
Dividends, DERs and undistributed earnings allocated to participating securities(2)	(446		)	(172		)	(1,195		)	(388		)
Net income allocable to common stockholders - basic and diluted	$	81,213		$	75,002		$	238,535		$	201,673
Denominator:
Weighted average common shares for basic earnings per share	355,510			280,278			336,485			280,190
Add: Weighted average dilutive equity instruments (3)	454			302			271			286
Denominator for diluted earnings per share	355,964			280,580			336,756			280,476
Basic and diluted EPS	$	0.23		$	0.27		$	0.71		$	0.72

(1) Amounts have been corrected to conform to the current year’s presentation, which includes the impact of the two-class method to calculate basic and diluted earnings per share.  Application of such method is not material to basic and diluted EPS reported in prior periods.

(2) There were no undistributed earnings to allocate to participating securities for the three and nine months ended September 30, 2011, as the Company declared its common stock dividend for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 during such respective quarters.

(3) At September 30, 2011, the Company had an aggregate of 671,000 equity instruments outstanding that were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2011, as their inclusion would have been anti-dilutive.  These equity instruments were comprised of 477,000 stock options with a weighted average exercise price of $10.15 and a weighted average remaining contractual life of 2.0 years, approximately 179,000 shares of restricted common stock with a weighted average grant date fair value of $8.18, and 15,000 RSUs with a weighted average grant date fair value of $5.63.  These options may have a dilutive impact on future EPS.