NOTE 2 — EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three and six months ended June 30, 2011, respectively, 1,056,901 and 1,419,282 shares of common stock equivalents related to convertible debt, debt that can be settled in stock, and equity-based awards have not been included in the diluted per share calculation as the shares would be antidilutive. For the three and six months ended June 30, 2010, 6,446,214 and 5,815,484, respectively, of common stock equivalents related to convertible debt and equity based awards have not been included in the diluted per share calculation, as the Company recorded a net loss for those periods. The effect of potentially dilutive stock outstanding as of June 30, 2011, and 2010 are as follows (in thousands, except per share data):


	Three months ended June 30, 2011						Six months ended June 30, 2011
	Income		Shares		Per-Share		Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic EPS
Net Income available to common stockholders	$	38,611		89,310	$	0.43	$	51,075		89,299	$	0.57
Effect of Dilutive Securities
Equity awards		—		402				—		384

Diluted EPS
Net Income available to common stockholders	$	38,611		89,712	$	0.43	$	51,075		89,683	$	0.57


	Three months ended June 30, 2010								Six months ended June 30, 2010
	Income			Shares		Per-Share			Income			Shares		Per-Share
	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)		Amount
Basic EPS
Net Income available to common stockholders	$	(50,744	)		88,501	$	(0.57	)	$	(63,601	)		85,145	$	(0.75	)
Effect of Dilutive Securities
Equity awards		—			—					—			—

Diluted EPS
Net Income (loss) available to common stockholders	$	(50,744	)		88,501	$	(0.57	)	$	(63,601	)		85,145	$	(0.75	)