Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

4.      Earnings per Share

Earnings per share ("EPS")  are computed using the weighted average number of shares of capital stock outstanding.  Earnings and diluted earnings per share are computed as follows (in thousands, except per share data):

	Net Income
For the Three Months Ended March 31,	Income		Shares		Earnings per Share
2012
Earnings	$	20,445		18,958	$	1.08
Dilutive stock options		-		304
Nonvested stock awards		-		91
Diluted earnings	$	20,445		19,353	$	1.06
2011
Earnings	$	18,101		21,055	$	0.86
Dilutive stock options		-		430
Nonvested stock awards		-		83
Diluted earnings	$	18,101		21,568	$	0.84

For the three-month period ended March 31, 2012, 1.4 million stock options were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price for most of the period. For the three month period ended March 31, 2011, 979,000 stock options were excluded from the computation of diluted earnings per share.

Diluted earnings per share may be impacted in the future as the result of the issuance of our 1.875% Senior Convertible Notes (the "Notes") and related purchased call options and sold warrants.  Per FASB's authoritative guidance on the effect of contingently convertible instruments on diluted earnings per share and convertible bonds with an issuer option to settle for cash upon conversion, we will not include any shares related to the Notes in our calculation of diluted earnings per share until our average stock price for a quarter exceeds the current conversion price.  We would then include in our diluted earnings per share calculation those shares issuable using the treasury stock method.  The amount of shares issuable is based upon the amount by which the average stock price for the quarter exceeds the conversion price.  The purchased call option does not impact the calculation of diluted earnings per share as it is always anti-dilutive. The sold warrants become dilutive when our average stock price for a quarter exceeds the strike price of the warrant.

The following table provides examples of how changes in our stock price impact the number of shares that would be included in our diluted earnings per share calculation at March 31, 2012.  It also shows the impact on the number of shares issuable upon conversion of the Notes and settlement of the purchased call options and sold warrants:

	Shares		Total Treasury	Shares Due	Incremental
	Underlying 1.875%		Method	to the Company	Shares Issued/
Share	Convertible	Warrant	Incremental	under Notes	Received by the Company
Price	Notes	Shares	Shares (a)	Hedges	upon Conversion (b)
$         80.73	35,902	-	35,902	(38,407)	(2,505)
$         90.73	291,145	-	291,145	(311,458)	(20,313)
$       100.73	495,709	-	495,709	(530,295)	(34,586)
$       110.73	663,325	120,190	783,515	(709,606)	73,909
$       120.73	803,174	318,617	1,121,791	(859,212)	262,579
$       130.73	921,628	486,687	1,408,315	(985,930)	422,385

      a) Represents the number of incremental shares that must be included in the calculation of fully diluted shares under U.S. GAAP.

      b) Represents the number of incremental shares to be issued by the Company upon conversion of the 1.875% Convertible Notes, assuming concurrent settlement of the note hedges and warrants.