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Net Income Per Share

9 Months Ended

Sep. 30, 2011

Net Income Per Share [Abstract]

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 nine months ended September 30, 2010, the impact of outstanding options to purchase 12,000 shares of common stock, in each period, was anti-dilutive; these shares were excluded from the calculation of diluted net income per share. For only the three months ended September 30, 2011, 12,000 shares were anti-dilutive and were excluded from the calculation of diluted net income per share. The following is a reconciliation between basic and diluted weighted average shares outstanding for the three and nine months ended September 30, 2011 and 2010:


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

Net income		$	44,173			$	44,293			$	127,501			$	129,606

Net income attributable to unvested awarded performance stock			(1,395	)			(1,361	)			(3,959	)			(4,050	)


Net income attributable to common shares		$	42,778			$	42,932			$	123,542			$	125,556


Weighted average basic number of common shares outstanding			143,212				142,472				142,913				142,247

Less unvested awarded performance stock included in weighted average basic shares outstanding			(4,522	)			(4,379	)			(4,438	)			(4,445	)


Weighted average number of common shares outstanding for basic earnings per common share			138,690				138,093				138,475				137,802

Dilutive effect of stock options			1,753				1,414				1,645				1,326


Weighted average number of shares outstanding			140,443				139,507				140,120				139,128


Net income per share:
Basic		$	0.31			$	0.31			$	0.89			$	0.91

Diluted		$	0.30			$	0.31			$	0.88			$	0.90