Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 2.  Earnings Per Share

Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive stock options and restricted shares, and dilutive shares related to the company’s 5.125% convertible senior notes, and are excluded from the computation in periods in which they have an anti-dilutive effect. Options to purchase 1.2 million and 2.3 million shares were anti-dilutive at June 30, 2011 and 2010, respectively.

The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for net income attributable to Steel Dynamics, Inc. (in thousands, except per share data):

	Three Months Ended June 30,
	2011					2010
	Net Income (Numerator)		Shares (Denominator)	Per Share Amount		Net Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic earnings per share	$	98,710	218,500	$	.45	$	49,207	216,635	$	.23
Dilutive stock option effect	—		1,384			—		1,583
5.125% convertible senior notes, net of tax	2,358		16,382			2,377		16,382
Diluted earnings per share	$	101,068	236,266	$	.43	$	51,584	234,600	$	.22

	Six Months Ended June 30,
	2011					2010
	Net Income (Numerator)		Shares (Denominator)	Per Share Amount		Net Income (Numerator)		Shares (Denominator)	Per Share Amount
Basic earnings per share	$	204,613	218,246	$	.94	$	114,176	216,459	$	.53
Dilutive stock option effect	—		1,617			—		1,789
5.125% convertible senior notes, net of tax	4,716		16,382			4,754		16,382
Diluted earnings per share	$	209,329	236,245	$	.89	$	118,930	234,630	$	.51