Earnings per Common Share

9 Months Ended

Sep. 30, 2012

Earnings per Common Share

5. Earnings per Common Share

Earnings per common share, basic, is computed by dividing net income less preferred stock dividends (i.e., net income allocable to common shareholders) by the weighted-average number of common shares outstanding for the period. Earnings per common share, diluted, is computed by dividing net income by the weighted-average number of common and potentially dilutive common equivalent shares outstanding for the period. Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported, or in periods when diluted earnings (loss) per share is more favorable than basic earnings (loss) per share.

Dilutive securities include the common stock equivalents of convertible preferred stock and convertible senior notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units granted to employees and non-employees (see Note 14). Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with Accounting Standards Codification (“ASC”) Topic 260, “Earnings per Share”.

The following table summarizes the weighted-average common shares used in the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Loss per common share—basic and diluted
Net loss	$	(86,798	)	$	(62,587	)	$	(52,197	)	$	(108,835	)
Less: Preferred stock dividends		(2,414	)		(2,625	)		(7,664	)		(7,875	)
Net loss allocable to common shareholders	$	(89,212	)	$	(65,212	)	$	(59,861	)	$	(116,710	)
Weighted-average common shares outstanding—basic and diluted		67,162			64,781			65,740			64,505
Basic and diluted loss per common share	$	(1.33	)	$	(1.01	)	$	(0.91	)	$	(1.81	)

Options with an exercise price in excess of the average market value of the Company’s common stock during the period have been excluded from the calculation as their effect would be antidilutive. Additionally, potentially dilutive securities were excluded from the computation in periods in which a net loss is reported as their effect would be antidilutive. For the three months ended September 30, 2012 and 2011, dilutive securities outstanding totaling approximately 26,135,000 and 30,583,000 shares, respectively, (including preferred stock of 14,958,000 and 19,858,000, respectively, and shares underlying convertible senior notes of 5,275,000 for the three months ended September 30, 2012) were excluded from the calculations as their effect would have been antidilutive. For the nine months ended September 30, 2012 and 2011 dilutive securities outstanding totaling approximately 28,222,000 and 30,790,000, respectively (including preferred stock of 18,224,847 and 19,858,000, respectively, and shares underlying convertible senior notes of 1,758,000 for the nine months ended September 30, 2012), were excluded from the calculations as their effect would have been antidilutive.