The treasury stock method is used to measure the dilutive impact of non-vested restricted shares of common stock and outstanding stock options. For the three months ended September 30, 2011, and 2010, a weighted average of 41,504 and 100,145 non-vested shares of restricted common stock and 148,095 and 210,017 stock options, respectively, were anti-dilutive and therefore were not included in the diluted weighted average share calculation. For the nine months ended September 30, 2011, and 2010, a weighted average of 32,498 and 119,550 non-vested shares of restricted common stock and 145,895 and 186,014 stock options, respectively, were anti-dilutive and therefore were not included in the diluted weighted average share calculation.

The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts):

		Three months ended				Nine months ended

		September 30, 2011		September 30, 2010		September 30, 2011		September 30, 2010
Net income		$	25,507	$	11,659	$	84,494	$	27,108

Basic weighted average common shares outstanding			75,203		75,101		75,173		75,077
	Add: Dilutive effect of non-vested restricted common stock		49		34		56		45
	Add: Dilutive effect of stock options outstanding		48		9		49		12

Diluted weighted average common shares outstanding			75,300		75,144		75,278		75,134

Earnings per share:
	Basic	$	0.34	$	0.16	$	1.12	$	0.36

	Diluted	$	0.34	$	0.16	$	1.12	$	0.36