Earnings per Share

6 Months Ended

Jun. 30, 2015

Note 6 – Earnings per Share

Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common equivalent shares outstanding during the reporting period. We calculate diluted EPS using the treasury stock method for unvested restricted stock, and the if-converted method for convertible debt instruments. For unvested restricted stock, assumed proceeds under the treasury stock method would include unamortized compensation expense and windfall tax benefits or shortfalls. The determination of potentially issuable shares from our convertible debt instruments does not consider satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. In addition, interest expense, net of tax, related to dilutive convertible debt instruments is added back to earnings in calculating diluted EPS.

The following table reconciles the numerators and denominators used to calculate basic and diluted EPS and also indicates the number of antidilutive securities.

	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data and as otherwise noted)
Basic earnings per share:

Net income	$	113,654	$	45,522	$	246,730	$	105,504

Weighted average common shares outstanding		339,705		338,626		339,406		338,419

Basic income per share	$	0.33	$	0.13	$	0.73	$	0.31

Diluted earnings per share:

Net income	$	113,654	$	45,522	$	246,730	$	105,504

Interest expense, net of tax:
2% Convertible Senior Notes due 2020		3,049		3,049		6,098		6,098
5% Convertible Senior Notes due 2017		4,692		-		9,384		-

Diluted income available to common shareholders	$	121,395	$	48,571	$	262,212	$	111,602

Weighted average shares - basic		339,705		338,626		339,406		338,419

Effect of dilutive securities:
Unvested restricted stock units		1,831		2,913		2,203		3,013
2% Convertible Senior Notes due 2020		71,942		71,942		71,942		71,942
5% Convertible Senior Notes due 2017		25,670		-		25,670		-

Weighted average shares - diluted		439,148		413,481		439,221		413,374

Diluted income per share	$	0.28	$	0.12	$	0.60	$	0.27

Antidilutive securities (in millions)		28.9		54.5		28.9		54.5