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Net Income Per Share
 12 Months Ended
Dec. 31, 2011
Net Income Per Share  
Net Income Per Share

14. 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.
 
   
Years Ended December 31,
  
   
2011
    
2010
    
2009
  
   
(in millions)
  
Numerator:
                  
Net income (loss)
   $ (540.7 )   $ 7.5     $ 58.5  
Net interest expense on convertible notes and convertible preferred stock dividends (a)
  
 (b)
        -       0.1  
Net income (loss) if-converted
  $ (540.7 )   $ 7.5     $ 58.6  
                         
Denominator:
                        
Weighted average common shares
    122.5       114.7       112.9  
Less: Weighted average unvested restricted stock
     1.7       1.9       1.5  
Denominator for basic calculation
    120.8       112.8       111.4  
                         
Weighted average effect of dilutive securities:
                        
Stock compensation awards
    0.1       0.5       0.6  
Convertible notes
    44.5       48.1       48.1  
Convertible preferred stock (c)
    19.2       5.2        -  
Subtotal
    63.8       53.8       48.7  
Less: shares excluded in a period of a net loss (d)
     63.8        -        -  
Weighted average effect of dilutive securities
     -       53.8       48.7  
Denominator for diluted calculation
    120.8       166.6       160.1  
                         
Net income (loss) per share – basic
  $ (4.48 )   $ .07     $ .53  
Net income (loss) per share – diluted
  $ (4.48 )   $ .05     $ .37  

(a) Interest expense on convertible notes and convertible preferred stock dividends net of amount capitalized and net of tax.
(b) No dilutive effect is recognized in a period in which a net loss has occurred.  Net interest expense on convertible notes and convertible preferred stock dividends was $4.7 million in 2011.
(c) The number of equivalent common shares for the convertible preferred stock is based on the arithmetic average of the daily volume weighted average prices per share of common stock for each of the last 20 trading days, and is determined as of the beginning of the period for purposes of calculating diluted earnings per share.
(d) No dilutive effect is recognized in a period in which a net loss has occurred.


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):
 
Years Ended December 31,
 
2011
2010
2009
Options excluded from diluted earnings per share
3.1
2.5
1.9
Warrants excluded from diluted earnings per share
6.3
2.1
-
Exercise price of excluded options
$3.72 to
$5.18 to
$5.00 to
 
$14.28
$14.28
$16.90
Exercise price of excluded warrants
$7.50
$7.50
-