Note 5. Earnings Per Common Share

9 Months Ended

Sep. 30, 2011

Note 5. Earnings Per Common Share

We are authorized to issue 500,000,000 shares of common stock, $0.25 par value per share, of which 279,620,991 shares were issued and outstanding at September 30, 2011.

The following table reconciles weighted average common shares used in the computations of basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2011 and 2010 (thousands, except per-share amounts):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Numerator
Net income	$	55,921		$	19,791		$	132,595		$	58,719
Preferred stock dividends		(138	)		(3,408	)		(414	)		(10,225	)
Net income applicable to common shares for basic and diluted earnings per share	$	55,783		$	16,383		$	132,181		$	48,494

Denominator
Basic weighted average common shares		279,541			256,095			279,067			249,039
Dilutive stock options and restricted stock		15,459			14,413			16,672			17,106
Diluted weighted average common shares		295,000			270,508			295,739			266,145
Basic earnings per common share
Net income applicable to common shares	$	0.20		$	0.06		$	0.47		$	0.19
Diluted earnings per common share
Net income applicable to common shares	$	0.19		$	0.06		$	0.45		$	0.18

Diluted income per share for the three and nine months ended September 30, 2011 and 2010 exclude the potential effects of outstanding shares of our convertible preferred stock, as their conversion and exercise would have no effect on the calculation of dilutive shares.

Options to purchase 552,388 shares of our common stock were excluded from the computation of diluted earnings per share for the three-month and nine-month periods ended September 30, 2011. For the three-month and nine-month periods ended September 30, 2010, options to purchase 1,108,274 shares of our common stock were excluded from the computation of diluted earnings per share. The exercise price of the options not included in the computations of diluted earnings per share exceeded the average price of our stock during those periods and therefore would not affect the calculation of earnings per share.