Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2012

Earnings (Loss) per Share

Earnings (Loss) per Share

(16) Earnings (Loss) per Share

        For the three months ended March 31, 2012 and 2011, and cumulatively for the period from June 12, 2008 (Inception) through March 31, 2012, the cumulative undeclared and paid dividends on the Convertible Preferred Stock for the period were subtracted from net (loss) income attributable to Molycorp stockholders for the period for the purpose of computing the basic and diluted earnings per share. The cumulative undeclared and paid dividends on the Convertible Preferred Stock for the three months ended March 31, 2011 was revised for an immaterial amount that had no impact on the basic and diluted loss per share for that period.

(In thousands, except share and per share amounts)	Three Months Ended March 31, 2012			Three Months Ended March 31, 2011			Total from June 12, 2008 (Inception) Through March 31, 2012
Net (loss) income attributable to Molycorp stockholders	$	(3,478	)	$	(2,198	)	$	21,421
Cumulative undeclared and paid dividends on Convertible Preferred Stock		(2,846	)		(1,423	)		(12,808	)
(Loss) income attributable to common stockholders		(6,324	)		(3,621	)		8,613
Weighted average common shares outstanding—basic		87,006,460			82,253,700			60,086,657
Basic (loss) income per share	$	(0.07	)	$	(0.04	)	$	0.14
Weighted average common shares outstanding—diluted		87,006,460			82,253,700			60,087,803
Diluted (loss) income per share	$	(0.07	)	$	(0.04	)	$	0.14

        Diluted earnings per share reflect the dilutive impact of potential common stock and unvested restricted shares of common stock in the weighted average number of common shares outstanding during the period, if dilutive. For this purpose, the "treasury stock method" and "if-converted method," as applicable, are used.

        Under the treasury stock method, assumed proceeds upon the exercise of stock options are considered to be used to purchase common stock at the average market price of the shares during the period. Also under the treasury stock method, fixed awards and nonvested shares, such as restricted stock, are deemed options for purposes of computing diluted earnings per share. As of March 31, 2012 and 2011, all potential common stock under the treasury stock method were antidilutive in nature; consequently, the Company does not have any adjustments between earnings per share and diluted earnings per share related to stock options and restricted stock awards.

        In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be antidilutive. Convertible preferred stock (such as the Convertible Preferred Stock) is antidilutive whenever the amount of the dividend declared in or accumulated for the current period including the deemed dividend in the period from a beneficial conversion feature per common share obtainable on conversion exceeds basic earnings per share. The Convertible Preferred Stock was antidilutive as of March 31, 2012 and 2011. Also under the if-converted method, convertible debt (such as the Convertible Notes) is antidilutive whenever its interest including any deemed interest from a beneficial conversion feature and nondiscretionary adjustments, net of tax, per common share obtainable on conversion exceeds basic earnings per share. As of March 31, 2012, the Convertible Notes were antidilutive.