Net Income Per Share

9 Months Ended

Sep. 30, 2011

Net Income Per Share [Abstract]

Net Income Per Share

Note J—Net Income Per Share

The calculation of net income per share for the three and nine months ended September 30, 2011 and 2010 is reflected in the following table (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Basic net income per share:
Net income	$	44,168	$	20,624	$	107,298	$	41,279
Income allocated to participating securities—basic		615		525		1,564		1,849
Net income available to common stockholders—basic	$	43,553	$	20,099	$	105,734	$	39,430
Basic weighted average shares		139,449		142,230		141,118		143,182
Basic net income per share	$	.31	$	.14	$	.75	$	.28
Diluted net income per share:
Net income	$	44,168	$	20,624	$	107,298	$	41,279
Income allocated to participating securities—diluted		612		525		1,558		1,849
Net income available to common stockholders—diluted	$	43,556	$	20,099	$	105,740	$	39,430
Basic weighted average shares		139,449		142,230		141,118		143,182
Dilutive effect of potential common shares		984		770		1,255		1,145
Diluted weighted average shares		140,433		143,000		142,373		144,327
Diluted net income per share	$	.31	$	.14	$	.74	$	.27

Potential common shares include the dilutive effect of stock options, unvested performance-based restricted stock, restricted stock which contain forfeitable rights to dividends, and stock units. The weighted average diluted common shares outstanding for the three and nine months ended September 30, 2011 and 2010, excludes the effect of the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Total number of anti-dilutive potential common shares		2,996		2,096		764		782

Employee stock options will have a dilutive effect under the treasury method only when the respective period's average market value of the Company's common stock exceeds the exercise proceeds. Under the treasury method, exercise proceeds include the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in capital surplus, if the options were exercised and the stock units and performance-based restricted stock had vested.