Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Note 2 – Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands, except per share data)
Income (numerator):
Basic:
Net income	$	23,659		$	51,821		$	105,180		$	148,809
Net income attributable to participating securities		(540	)		(976	)		(2,404	)		(2,807	)
Net income attributable to common stock – basic	$	23,119		$	50,845		$	102,776		$	146,002
Diluted:
Net income	$	23,659		$	51,821		$	105,180		$	148,809
Net income attributable to participating securities		(540	)		(975	)		(2,402	)		(2,805	)
Net income attributable to common stock – diluted	$	23,119		$	50,846		$	102,778		$	146,004
Weighted average shares (denominator):
Weighted average shares – basic		48,342			48,029			48,300			47,963
Diluted effect of stock options		42			42			43			43
Weighted average shares – diluted		48,384			48,071			48,343			48,006
Basic income per common share	$	0.48		$	1.06		$	2.13		$	3.04
Diluted income per common share	$	0.48		$	1.06		$	2.13		$	3.04

Stock options that were considered antidilutive because the exercise price of the option exceeded the average price of our common stock for the applicable period totaled approximately 369,000 and 376,000 shares for the three and nine-month periods ended September 30, 2012 and 2011, respectively.

During each of the three-month periods ended September 30, 2012 and 2011, respectively, approximately 59,000 shares of common stock were issued upon the vesting of restricted stock by employees and nonemployee directors. During the nine months ended September 30, 2012 and 2011, respectively, approximately 314,000 and 312,000 shares of common stock were issued upon the vesting of restricted stock by employees and nonemployee directors.

Because it is management’s stated intention to redeem the principal amount of our 1 ³/₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 4 – Long-Term Debt) in cash, we have used the treasury method for determining potential dilution in the diluted earnings per share computation. Since the average price of our common stock was less than the effective conversion price for such notes during the reporting period, the 2017 Convertible Notes were not dilutive for such period. Additionally, since the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 4 – Long-Term Debt) for the reporting period, such warrants were also not dilutive for such period.