Net Income Per Share

3 Months Ended

Mar. 31, 2012

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 months ended March 31, 2012 and 2011 is reflected in the following table (in thousands, except per share amounts):

	Three Months Ended March 31,
	2012		2011
Basic net income per share:
Net income	$	48,334	$	26,705
Income allocated to participating securities—basic		265		413
Net income available to common stockholders—basic	$	48,069	$	26,292
Basic weighted average shares		139,384		142,653
Basic net income per share	$	.34	$	.18
Diluted net income per share:
Net income	$	48,334	$	26,705
Income allocated to participating securities—diluted		264		412
Net income available to common stockholders—diluted	$	48,070	$	26,293
Basic weighted average shares		139,384		142,653
Dilutive effect of potential common shares		1,059		1,483
Diluted weighted average shares		140,443		144,136
Diluted net income per share	$	.34	$	.18

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 months ended March 31, 2012 and 2011, excludes the effect of the following (in thousands):

	Three Months Ended March 31,
	2012		2011
Total number of anti-dilutive potential common shares		752		184

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.