Computation of (Loss) Earnings Per Share

6 Months Ended

Jun. 30, 2011

Computation of (Loss) Earnings Per Share [Abstract]

Computation of (Loss) Earnings Per Share

Note 3. Computation of (Loss) Earnings Per Share

     Basic (loss) earnings per share was computed by dividing net (loss) earnings by the weighted-average number of common shares outstanding, including vested restricted stock awards, during the period. Diluted earnings per share reflects the potential dilution that would occur if net earnings were divided by the weighted-average number of common shares and potentially dilutive common shares from outstanding stock options as well as unvested, time-based restricted stock awards. Potentially dilutive common shares were calculated using the treasury stock method and represent incremental shares issuable upon exercise of the Company’s outstanding stock options and unvested, time-based restricted stock awards. The Company has awarded restricted stock with both time-based as well as performance-based vesting provisions. Stock awards based on only performance conditions are not included in the calculation of basic or diluted earnings per share until the performance criteria are met. For periods in which the Company incurs losses, potentially dilutive shares are not considered in the calculation of net loss per share, as their impact would be anti-dilutive. For periods in which the Company has earnings, out-of-the-money stock options (i.e., the average stock price during the period is below the exercise price of the stock option) are not included in diluted earnings per share as their effect would be anti-dilutive. For the three months ended June 30, 2011 and 2010, and the six months ended June 30, 2011 and 2010, 1.9 million, 2.8 million, 2.0 million, and 2.7 million shares were excluded from the calculation of diluted (loss) earnings per share as their effect was anti-dilutive, respectively.

     The following table reconciles the weighted-average shares used in computing basic and diluted (loss) earnings per share in the respective periods (in thousands):

	Three months				Six months
	ended				ended
	June 30,				June 30,
	2011		2010		2011		2010
Shares used in basic (loss) earnings per share (weighted-average common shares outstanding)		32,900		28,406		32,675		28,457
Effect of dilutive stock options and restricted stock awards		—		—		435		—
Shares used in diluted (loss) earnings per share calculation		32,900		28,406		33,110		28,457