Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

16. Earnings Per Share

Basic earnings per share ("EPS") is computed by dividing earnings (loss) attributable to common shareholders during the period by the weighted average number of shares of common stock outstanding during each period.  Diluted EPS is computed by dividing net income (loss) attributable to common shareholders during the period by the weighted average number of shares of common stock that would have been outstanding assuming the issuance of potentially dilutive shares of common stock as if such shares were outstanding during the reporting period, net of shares assumed to be repurchased using the treasury stock method.  The dilutive effect of stock options and performance units is based on the treasury stock method.  The dilutive effect of non-vested restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common shareholders after considering the dilutive effect of potential shares of common stock other than the non-vested shares of restricted stock.

In accordance with current accounting guidance, certain instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to participate in computing earnings per share under the two-class method. Our non-vested restricted stock awards contain nonforfeitable rights to dividends and consequently are included in the computation of basic earnings per share under the two-class method. 

The following table presents information necessary to calculate earnings (loss) per share of common stock for the three and six months ended June 30, 2011 and 2010:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2011		2010		2011		2010
	(In thousands, except per share data)
Basic EPS:
Net income (loss) attributable to Global Industries, Ltd.	$	(27,192)	$	1,406	$	(61,118)	$	(19,952)
Less earnings attributable to shareholders of non-vested restricted stock		0		(15)		0		0
Earnings (loss) attributable to common shareholders	$	(27,192)	$	1,391	$	(61,118)	$	(19,952)
Weighted-average number of common shares outstanding—basic		114,289		113,831		114,230		113,595
Basic earnings (loss) per common share	$	(0.24)	$	0.01	$	(0.54)	$	(0.18)
Diluted EPS:
Earnings (loss) attributable to common shareholders—basic	$	(27,192)	$	1,391	$	(61,118)	$	(19,952)
Adjustment to earnings (loss) attributable to common shareholders for redistribution to shareholders of non-vested restricted stock..		0		0		0		0
Adjusted earnings (loss) attributable to common shareholders—diluted	$	(27,192)	$	1,391	$	(61,118)	$	(19,952)
Weighted average number of common shares outstanding—basic		114,289		113,831		114,230		113,595
Dilutive effect of potential common shares:
Stock options		0		20		0		0
Performance units		0		275		0		0
Weighted-average number of common shares outstanding—diluted.		114,289		114,126		114,230		113,595
Diluted net income (loss) per common share	$	(0.24)	$	0.01	$	(0.54)	$	(0.18)

Anti-dilutive shares primarily represent options where the strike price was in excess of the average market price of our common stock for the period reported and are excluded from the computation of diluted earnings per share.  All potentially dilutive shares of common stock were excluded for the three and six months ended June 30, 2011 and for the six months ended June 30, 2010 as the net losses result in such shares being anti-dilutive.  Excluded anti-dilutive shares totaled 1.6 million and 1.7 million for the three months ended June 30, 2011 and 2010, respectively.  Excluded anti-dilutive shares totaled 1.6 million and 2.0 million for the six months ended June 30, 2011 and 2010, respectively.

The net settlement premium obligation on the Senior Convertible Debentures was not included in the dilutive earnings per share calculation for the three or six months ended June 30, 2011 and 2010 because the conversion price of the Senior Convertible Debentures was in excess of our common stock price.