Earnings per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings per Share

Note 9 - Earnings per Share

Basic net income or loss per common share is calculated by dividing net income or loss available to common shareholders by the basic weighted-average common shares outstanding for the respective period. The Company’s earnings per share calculations reflect the impact of any repurchases of shares of common stock made by the Company.

Diluted net income or loss per common share is calculated by dividing adjusted net income or loss by the diluted weighted-average common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist of in-the-money outstanding options, unvested RSUs, contingent PSUs, and shares into which the 3.50% Senior Convertible Notes are convertible.

PSUs represent the right to receive, upon settlement of the PSUs after completion of the three-year performance period, a number of shares of the Company’s common stock that may range from zero to two times the number of PSUs granted on the award date. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the contingency period. For additional discussion on PSUs, please refer to Note 7 - Compensation Plans under the heading Performance Stock Units Under the Equity Incentive Compensation Plan.

The Company’s 3.50% Senior Convertible Notes include a net-share settlement right giving the Company the option to irrevocably elect, by notice to the trustee under the indenture for the notes, to settle the Company’s obligation, in the event that holders of the notes elect to convert all or a portion of their notes, by delivering cash in an amount equal to each $1,000 principal amount of notes surrendered for conversion and, if applicable, at the Company’s option, shares of common stock or cash, or any combination of common stock and cash, for the amount of conversion value in excess of the principal amount. Subsequent to March 31, 2012, the Company called for the redemption of all of its outstanding 3.50% Senior Convertible Notes. Please refer to Note 5 - Long-Term Debt for additional discussion. For accounting purposes, the treasury stock method is used to measure the potential dilutive impact of shares associated with this conversion feature. Shares of the Company’s common stock traded at a quarterly average closing price exceeding the $54.42 conversion price for the three-month periods ended March 31, 2012, and 2011. As such, the 3.50% Senior Convertible Notes were dilutive for the three-month period ended March 31, 2012, and would have resulted in the notes having a dilutive impact on the Company’s first quarter 2011 diluted earnings per share calculation; however, the Company recorded a loss from continuing operations for the period ended March 31, 2011, and as a result, any potentially dilutive shares became anti-dilutive.

The treasury stock method is used to measure the dilutive impact of unvested RSUs, contingent PSUs, in-the-money stock options, and 3.50% Senior Convertible Notes as calculated in the basic and dilutive earnings per share table below. When there is a loss from continuing operations, as was the case for the three months ended March 31, 2011, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of earnings per share.

The following table sets forth the calculations of basic and diluted earnings per share:

	For the Three Months Ended March 31,
	2012		2011
	(in thousands, except per share amounts)
Net income (loss)	$	26,336	$	(18,503	)
Basic weighted-average common shares outstanding	64,104		63,447
Add: dilutive effect of stock options, unvested RSUs, and contingent PSUs	2,210		—
Add: dilutive effect of 3.50% Senior Convertible Notes	1,531		—
Diluted weighted-average common shares outstanding	67,845		63,447
Basic net income (loss) per common share	$	0.41	$	(0.29	)
Diluted net income (loss) per common share	$	0.39	$	(0.29	)