Since we have non-vested share-based payments with a nonforfeitable right to dividends or dividend equivalents (referred to as participating securities) we are required to use the two-class method of computing earnings per share. The Company's non-vested restricted stock and restricted stock units, for which vesting is predicated solely on the passage of time granted under the 1998 Long-Term Incentive Plan, are considered to be participating securities. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic and diluted earnings per share for the three and nine months ended June 30, 2011 and 2010 are calculated as follows:

			Three Months Ended				Nine Months Ended
			June 30				June 30
			2011		2010		2011		2010
			(In thousands, except per share amounts)

Basic Earnings Per Share from continuing operations
	Income (loss) from continuing operations		$	(1,474)	$	(4,229)	$	197,786	$	198,029
	Less: Income (loss) from continuing operations allocated
		to participating securities		(32)		(51)		2,076		2,018
	Income (loss) from continuing operations available to
		common shareholders	$	(1,442)	$	(4,178)	$	195,710	$	196,011

	Basic weighted average shares outstanding			90,127		92,648		90,233		92,513
	Income (loss) from continuing operations per share - Basic		$	(0.02)	$	(0.04)	$	2.17	$	2.12

Basic Earnings Per Share from discontinued operations
	Income from discontinued operations		$	908	$	1,075	$	7,854	$	6,273
	Less: Income from discontinued operations
		allocated to participating securities		20		13		82		64
	Income from discontinued operations available to
		common shareholders	$	888	$	1,062	$	7,772	$	6,209

	Basic weighted average shares outstanding			90,127		92,648		90,233		92,513
	Income from discontinued operations per share -
		Basic	$	0.01	$	0.01	$	0.09	$	0.07

	Net income (loss) per share - Basic		$	(0.01)	$	(0.03)	$	2.26	$	2.19

Diluted Earnings Per Share from continuing operations
	Income (loss) from continuing operations available to
		common shareholders	$	(1,442)	$	(4,178)	$	195,710	$	196,011
	Effect of dilutive stock options and other shares			-		-		4		4
	Income (loss) from continuing operations available to
		common shareholders	$	(1,442)	$	(4,178)	$	195,714	$	196,015

	Basic weighted average shares outstanding			90,127		92,648		90,233		92,513
	Additional dilutive stock options and other shares			-		-		297		343
	Diluted weighted average shares outstanding			90,127		92,648		90,530		92,856
	Income (loss) from continuing operations per share -
		Diluted	$	(0.02)	$	(0.04)	$	2.16	$	2.11

Diluted Earnings Per Share from discontinued operations
	Income from discontinued operations available to
		common shareholders	$	888	$	1,062	$	7,772	$	6,209
	Effect of dilutive stock options and other shares			2		-		-		-
	Income from discontinued operations available to
		common shareholders	$	890	$	1,062	$	7,772	$	6,209

	Basic weighted average shares outstanding			90,127		92,648		90,233		92,513
	Additional dilutive stock options and other shares			-		-		297		343
	Diluted weighted average shares outstanding			90,127		92,648		90,530		92,856
	Income from discontinued operations per share -
		Diluted	$	0.01	$	0.01	$	0.09	$	0.07

	Net income (loss) per share - Diluted		$	(0.01)	$	(0.03)	$	2.25	$	2.18

There were approximately 288,000 and 333,000 stock options and other shares excluded from the computation of diluted earnings per share for the three months ended June 30, 2011 and 2010 as their inclusion in the computation would be anti-dilutive.

There were no out-of-the-money stock options excluded from the computation of diluted earnings per share for the three and nine months ended June 30, 2011 and 2010 as their exercise price was less than the average market price of the common stock during that period.

On, July 1, 2010, we entered into an accelerated share repurchase agreement with Goldman Sachs & Co. under which we repurchased $100 million of our outstanding common stock in order to offset stock grants made under our various employee and director incentive compensation plans. We paid $100 million to Goldman Sachs & Co. on July 7, 2010 for shares of Atmos Energy common stock in a share forward transaction and received and retired 2,958,580 shares. On March 4, 2011, we received and retired an additional 375,468 common shares which concluded our share repurchase agreement. In total, we received and retired 3,334,048 common shares under the repurchase agreement. The final number of shares we ultimately repurchased in the transaction was based generally on the average of the daily volume-weighted average share price of our common stock over the duration of the agreement. As a result of this transaction, beginning in our fourth quarter of fiscal 2010, the number of outstanding shares used to calculate our earnings per share was reduced by the number of shares received and the $100 million purchase price was recorded as a reduction in shareholders' equity.