Note 5. Earnings Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

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 285,486,857 shares were issued and outstanding at September 30, 2012.

The following table reconciles weighted average common shares used in the computations of basic and diluted earnings per share for the three- and nine-month periods ended September 30, 2012 and 2011 (thousands, except per-share amounts):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Numerator
Net income (loss)	$	(885	)	$	55,921		$	14,211		$	132,595
Preferred stock dividends		(138	)		(138	)		(414	)		(414	)
Net income (loss) applicable to common shares for basic and diluted earnings per share	$	(1,023	)	$	55,783		$	13,797		$	132,181
Denominator
Basic weighted average common shares		285,492			279,541			285,400			279,067
Dilutive stock options and restricted stock		—			15,459			11,339			16,672
Diluted weighted average common shares		285,492			295,000			296,739			295,739
Basic earnings per common share
Net income applicable to common shares	$	0.00		$	0.20		$	0.05		$	0.47
Diluted earnings per common share
Net income applicable to common shares	$	0.00		$	0.19		$	0.05		$	0.45

Potential dilutive common shares include outstanding stock options, restricted stock awards, stock units, warrants, and convertible preferred stock for periods in which we have reported net income.  For periods in which we report net losses, potential dilutive common shares are excluded, as their conversion and exercise would not reduce earnings per share.  Diluted income per share for the nine-month period ended September 30, 2012, and the three- and nine-month periods ended September 30, 2011 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 570,005 shares of our common stock were excluded from the computation of diluted earnings per share for the nine-month period ended September 30, 2012.  For the three-month and nine-month periods ended September 30, 2011, options to purchase 552,388 shares of our common stock were excluded from the computation of diluted earnings per share.  In each case, 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.