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Earnings Per Share
 6 Months Ended
Jun. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income, adjusted for the effect of assumed conversions of convertible notes, by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive.
In connection with the sale of the 2008 Notes, the Company entered into a Share Lending Agreement for 3.8 million shares of the Company’s common stock (see Note 10). Contractual undertakings of the Borrower had the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, and all shares outstanding under the Share Lending Agreement were contractually obligated to be returned to the Company. As a result, shares loaned under the Share Lending Agreement were not considered outstanding for the purpose of computing and reporting earnings per share. The Share Lending Agreement was terminated on January 22, 2013 upon the return of all Borrowed Shares to the Company.
On February 15, 2013, the Company repurchased the remaining $5.2 million of outstanding 2008 Notes for cash. Following this repurchase, the Company no longer has any outstanding convertible senior notes. For the six months ended June 30, 2013 and 2012, the Company’s convertible notes were excluded from the calculation of diluted earnings per common share, as inclusion was anti-dilutive. In addition, for the three and six months ended June 30, 2013 and 2012, approximately 0.1 million stock options with an exercise price in excess of the average market price of the Company’s common stock were excluded from the calculation of diluted earnings per common share.
Basic and diluted earnings per common share are as follows (in thousands, except per share data):

Three months ended June 30,
 
Six months ended June 30,

2013
 
2012
 
2013
 
2012
Net income - Basic
$
8,440

 
$
13,178

 
$
16,205

 
$
16,784

Impact of assumed conversions:
 
 
 
 
 
 
 
Interest on convertible notes
—

 
570

 
—

 
—

Net income - Diluted
$
8,440

 
$
13,748

 
$
16,205

 
$
16,784

 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
51,086

 
48,227

 
49,841

 
47,890

Assumed conversions:
 
 
 
 
 
 
 
Incremental common shares from warrants
1,429

 
1,657

 
1,421

 
1,678

Incremental common shares from stock options
1,174

 
983

 
1,167

 
977

Incremental common shares from restricted stock units
24

 
73

 
16

 
41

Incremental common shares from convertible senior notes
—

 
3,092

 
—

 
—

Weighted average common shares outstanding - Diluted
53,713

 
54,032

 
52,445

 
50,586

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.17

 
$
0.27

 
$
0.33

 
$
0.35

Diluted earnings per common share
$
0.16

 
$
0.25

 
$
0.31

 
$
0.33