Earnings per Share

9 Months Ended

Sep. 30, 2011

Earnings per Share

Earnings per Share

5. Earnings per Share

Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding.  Diluted income per share is determined by dividing the net income by the sum of (1) the weighted average number of common shares outstanding and (2) if not anti-dilutive, the effect of stock awards determined utilizing the treasury stock method.  The dilutive effect of outstanding stock option awards for the quarters ended September 30, 2011 and 2010 was 14,000 and 35,000 shares, respectively. The dilutive effect of outstanding stock option awards for the nine months ended September 30, 2011 and 2010 was 148,000 and 54,000 shares, respectively.  Stock option awards to purchase 39,706 and 710,000 shares of common stock were excluded from the calculation of diluted income per share for the quarters ended September 30, 2011 and 2010, respectively, since the results would have been anti-dilutive.  Stock option awards to purchase 0 and 711,000 shares of common stock were excluded from the calculation of diluted income per share for the nine months ended September 30, 2011 and 2010, respectively, since the results would have been anti-dilutive.