Earnings per Share

9 Months Ended

Sep. 30, 2011

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2011 and 2010:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(in thousands, except per share amounts)
Basic and diluted
Net income	$	72,614	$	21,205	$	108,295	$	46,063

Weighted average common shares outstanding, basic	53,534		52,991		53,414		52,773
Plus: net effect of dilutive stock options and restricted common shares	726		368		828		232
Weighted average common shares outstanding, diluted	54,260		53,359		54,242		53,005

Earnings per share, basic	$	1.36	$	0.40	$	2.03	$	0.87
Earnings per share, diluted	$	1.34	$	0.40	$	2.00	$	0.87

Basic earnings per share is computed using the weighted average number of shares of common stock outstanding during the period, reduced where applicable for outstanding yet unvested shares of restricted common stock. The number of dilutive common stock equivalents was calculated using the treasury stock method. For the three months ended September 30, 2011 and 2010, options to purchase 7,618,529 shares and 7,150,519 shares, respectively, of common stock that could potentially dilute basic earnings per share in the future were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. For the nine months ended September 30, 2011 and 2010, options to purchase 7,351,738 shares and 8,684,283 shares, respectively, of common stock that could potentially dilute basic earnings per share in the future were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive.

For the three months ended September 30, 2011 and 2010, 0 and 6,750 shares, respectively, of unvested restricted stock that could potentially dilute basic earnings per share in the future were excluded from the calculation of diluted earnings per common share as their effect would have been anti-dilutive. For the nine months ended September 30, 2011 and 2010, 83,297 and 8,500 shares, respectively, of unvested restricted stock that could potentially dilute basic earnings per share in the future were excluded from the calculation of diluted earnings per common share as their effect would have been anti-dilutive.