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Net Income Per Share
 6 Months Ended
Jun. 30, 2011
Net Income Per Share  
Net Income Per Share

NOTE 3· Net Income Per Share

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are deemed to be participating securities and, therefore, are included in computing earnings per share ("EPS") pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Performance stock shares granted to employees under the Company's Performance Stock Plan and the 2010 Stock Incentive Plan are considered participating securities as they receive non-forfeitable dividend equivalents at the same rate as common stock.

 

Basic EPS is computed based on the weighted average number of common shares (including participating securities) issued and outstanding during the period. Diluted EPS is computed based on the weighted average of common shares issued and outstanding, plus equivalent shares assuming the exercise of stock options. The dilutive effect of stock options is computed by application of the treasury stock method. For the three and six months ended June 30, 2010, the impact of outstanding options to purchase shares of common stock of 12,000 and 1,457,000 shares, respectively, were anti-dilutive and were excluded from the calculation of diluted net income per share. For both the three and six months ended June 30, 2011, there were no anti-dilutive shares.  The following is a reconciliation between basic and diluted weighted average shares outstanding for the three and six months ended June 30, 2011 and 2010:

 

     For the three  months
ended June 30,		     For the six months
ended June 30,		  
(in thousands, except per share data)    2011     2010     2011     2010  

Net income

    $ 37,035      $ 41,185      $ 83,328      $ 85,313   

Net income attributable to unvested awarded performance stock

      (1,165 )      (1,295 )      (2,563 )      (2,688 ) 
                                

Net income attributable to common shares

    $ 35,870      $ 39,890      $ 80,765      $ 82,625   
                                

Weighted average basic number of common shares outstanding

      142,873        142,154        142,756        142,133   

Less unvested awarded performance stock included in weighted average basic shares outstanding

      (4,494 )      (4,469 )      (4,391 )      (4,479 ) 
                                

Weighted average number of common shares outstanding for basic earnings per common share

      138,379        137,685        138,365        137,654   

Dilutive effect of stock options

      1,563        1,420        2,585        1,283   
                                

Weighted average number of shares outstanding

      139,942        139,105        140,950        138,937   
                                

Net income per share:

         

Basic

    $ 0.26      $ 0.29      $ 0.58      $ 0.60   
                                

Diluted

    $ 0.26      $ 0.29      $ 0.57      $ 0.59