Note 3 – Earnings Per Share

Basic earnings per share is computed using the weighted-average number of shares outstanding. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents during the three and six months ended June 30, 2011 and 2010. Stock equivalents include common shares issuable upon the exercise of stock options and other equity instruments, and are computed using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in-capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period.

The following table sets forth the calculation of basic and diluted earnings per share.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Net income	$	14,701	$	20,137	$	29,214	$	38,279

Denominator for basic earnings per share - weighted-average number of common shares outstanding during the period		60,159		62,695		60,537		63,047
Incremental common shares attributable to exercise of outstanding dilutive options		313		450		413		457
Incremental common shares attributable to outstanding restricted shares, restricted stock units and phantom stock		95		98		175		94
Denominator for diluted earnings per share		60,567		63,243		61,125		63,598

Basic earnings per share	$	0.24	$	0.32	$	0.48	$	0.61
Diluted earnings per share	$	0.24	$	0.32	$	0.48	$	0.60

Options to purchase 3.7 million and 2.9 million common shares for the three and six months ended June 30, 2011, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price of the common shares. Options to purchase 2.4 million common shares for both the three and six months ended June 30, 2010 were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price of the common shares.