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Net Income Per Share
 6 Months Ended
Jun. 30, 2011
Net Income Per Share  
Net Income Per Share
12. NET INCOME PER SHARE

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period, excluding any unvested restricted stock.

In calculating diluted net income per share, the numerator is increased by interest expense on the convertible notes, net of amount capitalized and net of tax, and the denominator is increased by the weighted average number of shares resulting from potentially dilutive securities, assuming full conversion, consisting of stock compensation awards, convertible notes, convertible preferred stock and warrants.

   
Three Months Ended June 30,
    
Six Months Ended June 30,
  
   
2011
    
2010
    
2011
    
2010
  
   
(in millions)
  
Numerator:
                        
Net income (loss)
   $ (21.2 )   $ 7.2     $ (37.8 )   $ (2.5 )
Net interest expense on convertible notes and convertible preferred stock dividends (a)
  
(b)
        -    
(b)
    
(b)
  
Net income (loss) if-converted
  $ (21.2 )     7.2     $ (37.8 )     (2.5 )
                                 
Denominator:
                                
Weighted average common shares
    122.8       114.9       122.1       114.3  
Less: Weighted average unvested restricted stock
     1.7       2.0       1.8       2.0  
Denominator for basic calculation
    121.1       112.9       120.3       112.3  
                                 
Weighted average effect of dilutive securities:
                                
Stock compensation awards
 
(b)
       0.4    
(b)
    
(b)
  
Convertible preferred stock
 
(b)
       -    
(b)
       -  
Convertible notes 
  
(b)
       48.1    
(b)
    
(b)
  
Denominator for diluted calculation
    121.1       161.4       120.3       112.3  
                                 
Net income (loss) per share – basic
  $ (.18 )   $ .06     $ (.31 )   $ (.02 )
Net income (loss) per share – diluted
  $ (.18 )(b)   $ .04     $ (.31 )(b)   $ (.02 )(b)

(a)  
Interest expense on convertible notes and convertible preferred stock dividends net of amount capitalized and net of tax.
 
(b)  
No dilutive effect of convertible notes or stock compensation awards is recognized in a period in which a net loss has occurred.
 
In the three months ended June 30, 2011, there was no net interest expense on convertible notes and the weighted average number of shares for stock compensation awards, convertible preferred stock and convertible notes was 0.1 million, 17.4 million and 44.3 million, respectively.
 
In the six months ended June 30, 2011, there was no net interest expense on convertible notes and the weighted average number of shares for stock compensation awards, convertible preferred stock and convertible notes was 3.1 million, 15.5 million and 44.6 million, respectively.
 
In the six months ended June 30, 2010, net interest expense on convertible notes was less than $0.1 million and the weighted average number of shares for stock compensation awards and convertible notes was 0.4 million and 48.1 million, respectively.
 

Options and warrants to purchase shares of common stock having an exercise price greater than the average share market price are excluded from the calculation of diluted earnings per share (options and warrants in millions):
 
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2011
2010
2011
2010
Options excluded from diluted earnings per share
2.2
1.8
2.2
2.6
Warrants excluded from diluted earnings per share
6.3
-
6.3
-
Exercise price of excluded options
$5.00 -
$5.86 -
$5.00 -
$5.00 -
 
$14.28
$16.90
$14.28
$16.90
Exercise price of excluded warrants
$7.50
-
$7.50
-