Earnings Per Share

9 Months Ended

Sep. 30, 2011



(4)		Earnings Per Share

The Company computes earnings per share in accordance with FASB ASC 260-10. Under the guidance, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing basic earnings per share (EPS) pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings.

Basic earnings per share (“Basic EPS”) has been computed using the weighted average number of common shares outstanding during each period. Diluted EPS for the three and nine month periods ended September 30, 2011 and 2010 assumes, as of the beginning of the period, exercise of stock options using the treasury stock method. Certain of our stock options that would potentially dilute Basic EPS in the future were also antidilutive for the three and nine month periods ended September 30, 2011 and 2010, and are discussed below.

The following is a reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS for the three and nine month periods ended September 30, 2011 and 2010 (in thousands, except per share amounts):


	Three Months Ended September 30, 2011							Three Months Ended September 30, 2010
	Income							Income
	from							from
	Continuing					Per Share		Continuing					Per Share
	Operations			Shares		Amount		Operations			Shares		Amount
Basic EPS:
Income from continuing operations, and Share Amounts	$	17,007			42,470			$	9,403			37,880
Less: Income from continuing operations allocated to unvested shares		(326	)		—				(179	)		—

Income from continuing operations allocated to common shares	$	16,681			42,470	$	0.39	$	9,224			37,880	$	0.24
Dilutive Securities:
Plus: Income from continuing operations allocated to unvested shares		326			—				179			—
Less: Income from continuing operations re-allocated to unvested shares		(324	)		—				(178	)		—
Stock Options		—			208				—			178

Diluted EPS:
Income from continuing operations allocated to common shares, and assumed share conversions	$	16,683			42,678	$	0.39	$	9,225			38,058	$	0.24


	Nine months Ended September 30, 2011							Nine months Ended September 30, 2010
	Income							Income
	from							from
	Continuing					Per Share		Continuing					Per Share
	Operations			Shares		Amount		Operations			Shares		Amount
Basic EPS:
Income from continuing operations, and Share Amounts	$	63,938			42,365			$	36,156			37,792
Less: Income from continuing operations allocated to unvested shares		(1,195	)		—				(693	)		—

Income from continuing operations allocated to common shares	$	62,743			42,365	$	1.48	$	35,463			37,792	$	0.94
Dilutive Securities:
Plus: Income from continuing operations allocated to unvested shares		1,195			—				693			—
Less: Income from continuing operations re-allocated to unvested shares		(1,188	)		—				(689	)		—
Stock Options		—			254				—			203

Diluted EPS:
Income from continuing operations allocated to common shares, and assumed share conversions	$	62,750			42,619	$	1.47	$	35,467			37,995	$	0.93

Options to purchase approximately 1.4 million shares at an average exercise price of $32.44 were outstanding at September 30, 2011, while options to purchase approximately 1.4 million shares at an average exercise price of $29.00 were outstanding at September 30, 2010. Approximately 0.8 million and 0.7 million stock options to purchase shares were not included in the computation of Diluted EPS for the three months ended September 30, 2011 and 2010, respectively, and 0.7 million and 0.8 million stock options to purchase shares were not included in the computation of Diluted EPS for the nine months ended September 30, 2011 and 2010 because these stock options were antidilutive, in that the sum of the stock option price, unrecognized compensation expense and excess tax benefits recognized as proceeds in the treasury stock method was greater than the average closing market price for the common shares during those periods.