Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

2. 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 year ended December 31, 2011 assumes, as of the beginning of the period, exercise of stock options using the treasury stock method. As we recognized a net loss for the year ended December 31, 2009, the unvested share-based payments and stock options were not recognized in diluted earnings per share (“Diluted EPS”) calculations as they would be antidilutive. Certain of our stock options that would potentially dilute Basic EPS in the future were also antidilutive for the years ended December 31, 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 years ended December 31, 2011, 2010 and 2009 (in thousands, except per share amounts) from continuing operations:

	2011							2010							2009
	Income (Loss) from continuing operations			Shares		Per Share Amount		Loss from continuing operations			Shares		Per Share Amount		Income from continuing operations			Shares		Per Share Amount
Basic EPS:
Net Income (Loss) from continuing operations, and share Amounts	$	84,610			42,394			$	46,475			38,300			($	39,076	)		33,594
Less: Income (Loss) from continuing operations allocated to unvested shareholders		(1,598	)		—				(879	)		—				—			—
Income (Loss) from continuing operations allocated to common shares	$	83,012			42,394	$	1.96	$	45,596			38,300	$	1.19	($	39,076	)		33,594	($	1.16	)
Dilutive Securities:
Plus: Income (Loss) from continuing operations allocated to unvested shareholders		1,598							879
Less: Income (Loss) from continuing operations re-allocated to unvested shareholders
Stock Options		(1,589	)		235				(874	)		224				—			—
Diluted EPS:
Net Income (Loss) from continuing operations, and assumed share conversions	$	83,021			42,629	$	1.95	$	45,601			38,524	$	1.18	($	39,076	)		33,594	($	1.16	)

Options to purchase approximately 1.4 million shares at an average exercise price of $32.46 were outstanding at December 31, 2011, while options to purchase approximately 1.4 million shares at an average exercise price of $29.67 were outstanding at December 31, 2010, and options to purchase 1.3 million shares at an average exercise price of $29.72 were outstanding at December 31, 2009. Approximately 0.8 million and 0.6 million stock options to purchase shares were not included in the computation of Diluted EPS for the years ended December 31, 2011 and 2010, respectively, 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. All of the 1.3 million stock options to purchase shares were not included in the computation of Diluted EPS for the year ended December 31, 2009, as they would be antidilutive given the net loss from continuing operations.

Employee restricted stock grants of 0.2 million and 0.1 million shares were not included in the computation of Diluted EPS for the years ended December 31, 2011 and 2010, respectively, because these restricted stock grants were antidilutive in that the sum of the unrecognized compensation expense and excess tax benefits recognized as proceeds under the treasury stock method was greater than the average closing market price for the common shares during that period. All of the 0.7 million shares of employee restricted stock outstanding at December 31, 2009, were not included in the computation Diluted EPS, as they would be antidilutive given the net loss from continuing operations.