Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 3—Earnings Per Share:

On January 1, 2009, we adopted new accounting guidance associated with share-based payment transactions considered to be participating securities. This guidance states that unvested share-based payment awards that contain nonforfeitable rights to dividends, such as certain of our restricted stock awards, are participating securities and therefore shall be included in the earnings per share calculation pursuant to the two-class method. For the year ended December 31, 2009, this new guidance resulted in a decrease of $0.01 in our basic earnings per share as a result of an increase in our basic weighted-average common shares outstanding of approximately 317,000 shares while there was no impact on our reported diluted earnings per share despite an increase in our diluted weighted-average common shares of approximately 153,000 shares.

Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts):

	Year Ended December 31,
	2011		2010		2009
Basic earnings per share
Numerator:
Net income attributable to Albemarle Corporation	$	436,280	$	323,720	$	178,368
Denominator:
Weighted-average common shares for basic earnings per share		90,522		91,393		91,512
Basic earnings per share	$	4.82	$	3.54	$	1.95
Diluted earnings per share
Numerator:
Net income attributable to Albemarle Corporation	$	436,280	$	323,720	$	178,368
Denominator:
Weighted-average common shares for basic earnings per share		90,522		91,393		91,512
Incremental shares under stock compensation plans		1,000		791		534
Total shares		91,522		92,184		92,046
Diluted earnings per share	$	4.77	$	3.51	$	1.94

The Company's policy on how to determine windfalls and shortfalls for purposes of calculating assumed stock award proceeds under the treasury stock method when determining the denominator for diluted earnings per share is to exclude the impact of pro forma deferred tax assets (i.e. the windfall or shortfall that would be recognized in the financial statements upon exercise of the award). At December 31, 2011, there were 390,667 common stock equivalents not included in the computation of diluted earnings per share.

We have the authority to issue 15,000,000 shares of preferred stock in one or more classes or series. As of December 31, 2011, no shares of preferred stock have been issued.

On October 13, 2011, our Board of Directors authorized an increase in the number of shares the Company is permitted to repurchase under our stock repurchase plan up to a maximum of five million shares.