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Earnings Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
(4)           Earnings Per Share

The Company computes earnings per share in accordance with FASB ASC 260-10. Under the guidance, unvested restricted stock grants 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, 2012 and 2011 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, 2012 and 2011, 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, 2012 and 2011 (in thousands, except per share amounts):
 
Three Months Ended September 30, 2012
 
Three Months Ended September 30, 2011
 
Income
from
Continuing
Operations
 
Shares
 
Per Share
Amount
 
Income
from
Continuing
Operations
 
Shares
 
Per Share
Amount
Basic EPS:
 

 
 
 
 
 
 

 
 
 
 
Income from continuing operations, and Share Amounts
$
3,122

 
42,901

 
 
 
$
17,007

 
42,470

 
 
Less: (Income) loss from continuing operations allocated to unvested shares
(68
)
 
—

 
 
 
(326
)
 
—

 
 
Income from continuing operations allocated to common shares
$
3,054

 
42,901

 
$
0.07

 
$
16,681

 
42,470

 
$
0.39

Dilutive Securities:
 

 
 

 
 

 
 

 
 

 
 

Plus: Income from continuing operations allocated to unvested shares
68

 
—

 
 

 
326

 
—

 
 

Less: (Income) loss from continuing operations re-allocated to unvested shares
(68
)
 
—

 
 

 
(324
)
 
—

 
 

Stock Options
—

 
70

 
 

 
—

 
208

 
 

Diluted EPS:
 

 
 

 
 

 
 

 
 

 
 

Income from continuing operations allocated to common shares, and assumed share conversions
$
3,054

 
42,971

 
$
0.07

 
$
16,683

 
42,678

 
$
0.39



 
Nine Months Ended September 30, 2012
 
Nine Months Ended September 30, 2011
 
Income
from
Continuing
Operations
 
Shares
 
Per Share
Amount
 
Income
from
Continuing
Operations
 
Shares
 
Per Share
Amount
Basic EPS:
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations, and Share Amounts
$
9,720

 
42,812

 
 
 
$
63,938

 
42,365

 
 
Less: (Income) loss from continuing operations allocated to unvested shares
(210
)
 
—

 
 
 
(1,195
)
 
—

 
 
Income from continuing operations allocated to common shares
$
9,510

 
42,812

 
$
0.22

 
$
62,743

 
42,365

 
$
1.48

Dilutive Securities:
 

 
 

 
 

 
 

 
 

 
 

Plus: Income from continuing operations allocated to unvested shares
210

 
—

 
 

 
1,195

 
—

 
 

Less: (Income) loss from continuing operations re-allocated to unvested shares
(209
)
 
—

 
 

 
(1,188
)
 
—

 
 

Stock Options
—

 
133

 
 

 
—

 
254

 
 

Diluted EPS:
 

 
 

 
 

 
 

 
 

 
 

Income from continuing operations allocated to common shares, and assumed share conversions
$
9,511

 
42,945

 
$
0.22

 
$
62,750

 
42,619

 
$
1.47



Options to purchase approximately 1.6 million shares at an average exercise price of $32.97 were outstanding at September 30, 2012, while options to purchase approximately 1.4 million shares at an average exercise price of $32.44 were outstanding at September 30, 2011. Approximately 1.4 million and 0.8 million stock options to purchase shares were not included in the computation of Diluted EPS for the three months ended September 30, 2012 and 2011, respectively, and approximately 1.1 million and 0.7 million stock options to purchase shares were not included in the computation of Diluted EPS for the nine months ended September 30, 2012 and 2011 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.