Earnings Per Share

9 Months Ended

Sep. 30, 2011

Note 3 – Earnings Per Share

Basic earnings per share is computed using the weighted-average number of shares outstanding. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents during the three and nine months ended September 30, 2011 and 2010. Stock equivalents include common shares issuable upon the exercise of stock options and other equity instruments, and are computed using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that the Company has not yet recognized and the amount of estimated tax benefits that would be recorded in paid-in-capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period.

The following table sets forth the calculation of basic and diluted earnings per share.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2011		2010		2011		2010
Net income	$	19,867	$	22,469	$	49,081	$	60,748

Denominator for basic earnings per share - weighted-average number of common shares outstanding during the period		58,615		61,712		59,889		62,597
Incremental common shares attributable to exercise of outstanding dilutive options		177		305		298		474
Incremental common shares attributable to outstanding restricted shares, restricted stock units and phantom stock		87		86		204		91
Denominator for diluted earnings per share		58,879		62,103		60,391		63,162

Basic earnings per share	$	0.34	$	0.36	$	0.82	$	0.97
Diluted earnings per share	$	0.34	$	0.36	$	0.81	$	0.96

Options to purchase 3.8 million and 3.5 million common shares for the three and nine months ended September 30, 2011, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price of the common shares. Options to purchase 3.7 million and 2.9 million common shares for the three and nine months ended September 30, 2010, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price of the common shares.