Basic earnings per share (“EPS”) amounts are calculated by dividing earnings available to common shareholders by the weighted average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive common shares outstanding. The following table shows the basic and diluted earnings per share for three and nine months ended September 30, 2011 and 2010:

	For the three months ended September 30,
	2011								2010
	Loss			Shares (000)		Per-Share			Loss			Shares (000)		Per-Share
Net loss	$	(6,600	)						$	(16,787	)
Amount allocated to common shareholders (1)		100	%							100	%
Basic and Diluted EPS:
Loss applicable to common shareholders	$	(6,600	)		92,032	$	(0.07	)	$	(16,787	)		92,738	$	(0.18	)

(1)	We have not allocated the net loss allocable to common shareholders between common and preferred shareholders, as the holders of our preferred shares do not have a contractual obligation to share in the loss.

	For the nine months ended September 30,
	2011							2010
	Income			Shares (000)		Per-Share		Loss			Shares (000)		Per-Share
Net income (loss)	$	42,432						$	(5,309	)
Amount allocated to common shareholders (1)		91.92	%						100	%
Basic EPS:
Income (loss) allocable to common shareholders		39,003			92,697	$	0.42		(5,309	)		92,654	$	(0.06	)
Effect of Dilutive Securities: Plus:
Options		—			105				—			—
Service-based stock awards		—			295				—			—
Diluted EPS:
Income (loss) applicable to common shareholders with assumed conversion	$	39,003			93,097	$	0.42	$	(5,309	)		92,654	$	(0.06	)

(1)	We have not allocated the 2010 net loss allocable to common shareholders between common and preferred shareholders, as the holders of our preferred shares do not have a contractual obligation to share in the loss.

Our Series A Convertible Preferred Stock has similar characteristics of a “participating security” as described by ASC 260-10-45 “Participating Securities and the Two-Class Method”. In accordance with the guidance in the ASC 260-10-45, we calculate basic EPS using the Two-Class Method, allocating undistributed income to our preferred shareholder consistent with its participation rights, and diluted EPS using the If-Converted Method, when applicable.

The generally accepted accounting principles for reporting EPS do not require the presentation of basic and diluted EPS for securities other than common stock and the EPS amounts, as presented, only pertain to our common stock.

The Two-Class Method is an earnings allocation formula that determines earnings per share for common shares and participating securities according to dividends declared (or accumulated) and the participation rights in undistributed earnings.

The holders of our convertible preferred stock do not have a contractual obligation to share in the losses of Century. Thus, in periods where we report net losses, we will not allocate the net losses to the convertible preferred stock for the computation of basic or diluted EPS.

Options to purchase 632,334 and 690,075 shares of common stock were outstanding as of September 30, 2011 and September 30, 2010, respectively. For the three months ended September 30, 2011, all options and service-based stock were excluded from the calculation of diluted EPS because of their antidilutive effect on earnings per share. For the nine months ended September 30, 2011, approximately 351,000 options were excluded from the calculation of EPS because their exercise price exceeded the average market price of the underlying common stock. Shares to be issued upon the assumed conversion of our convertible debt were excluded from the calculation of diluted EPS because our 1.75% convertible senior notes were redeemed in May 2011.

During the three months ended September 30, 2011, we repurchased 3,625,218 shares of our common stock under a stock repurchase program (See Note 5 Shareholders’ Equity for additional information about this program). Shares repurchased under the program are excluded from the calculation of weighted average shares of common stock outstanding.

For the three and nine months ended September 30, 2010, all options and service-based stock were excluded from the calculation of diluted EPS due to their antidilutive effect on earnings per share.

Service-based stock for which vesting is based upon continued service is not considered issued and outstanding shares of common stock until vested and issued. However, the service-based stock is considered a common stock equivalent and, therefore, the weighted average service-based stock is included, using the treasury stock method, in common shares outstanding for diluted earnings per share computations if they have a dilutive effect on earnings per share. The weighted average service-based stock outstanding for the nine months ended at September 30, 2011 was approximately 295,000 shares.

For the calculation of basic and diluted EPS for the nine months ended September 30, 2011, using the Two-Class Method, we allocated our undistributed income to the convertible preferred stock as shown in the following tables:

	Nine months ended September 30, 2011
	Weighted average shares outstanding		Undistributed earnings
Common stock (in thousands)		92,697	$	39,003
Preferred stock (in thousands) (1)		8,151		3,429
TOTAL		100,848	$	42,432

(1)	Represents the weighted-average participation rights of our preferred shareholder as if it held the number of common shares into which its shares of preferred stock are convertible as of the record date.