Earnings Per Share

3 Months Ended

Mar. 31, 2013

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 EPS has been computed using the weighted average number of common shares outstanding during each period. Diluted EPS for the three months ended March 31, 2013 and 2012 assumes, as of the beginning of the period, exercise of stock options using the treasury stock method. Diluted EPS also assumes conversion of performance-based restricted stock units to common shares based on the number of shares (if any) that would be issuable, according to predetermined performance and market goals, if the end of the reporting period was the end of the contingency period. Certain of our stock options that would potentially dilute Basic EPS in the future were also antidilutive for the three months ended March 31, 2013 and 2012, 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 months ended March 31, 2013 and 2012 (in thousands, except per share amounts):

	Three Months Ended March 31, 2013						Three Months Ended March 31, 2012
	Net Income			Shares	Per Share Amount		Net Income			Shares	Per Share Amount
Basic EPS:
Income and Share Amounts	$	7,209		43,167			$	3,570		42,674
Less: Income allocated to unvested shares	(165		)				(74		)
Income allocated to common shares	$	7,044		43,167	$	0.16	$	3,496		42,674	$	0.08
Dilutive Securities:
Plus: Income allocated to unvested shares	165						74
Less: Income re-allocated to unvested shares	(165		)				(74		)
Stock Options				34						200
Restricted Stock Units				122						—
Diluted EPS:
Income allocated to common shares, and assumed share conversions	$	7,044		43,323	$	0.16	$	3,496		42,874	$	0.08

Options to purchase approximately 1.6 million shares at an average exercise price of $32.96 were outstanding at March 31, 2013, while options to purchase approximately 1.7 million shares at an average exercise price of $32.56 were outstanding at March 31, 2012. Approximately 1.4 million and 0.9 million stock options to purchase shares were not included in the computation of Diluted EPS for the three months ended March 31, 2013 and 2012, respectively, because these stock options were antidilutive. Approximately 0.3 million shares related to performance-based restricted stock units that could be converted to common shares in the future based on predetermined performance and market goals were not included in the computation of Diluted EPS for the three months ended March 31, 2013, because the performance and market conditions had not been met, assuming the end of the reporting period was the end of the contingency period.