Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2012

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

NOTE K. Net Income (Loss) Per Share

The Company uses the two-class method of calculating net income (loss) per share because certain of the Company's and its consolidated subsidiaries' unvested share-based awards qualify as participating securities. Participating securities participate in the Company's dividend distributions and are assumed to participate in the Company's undistributed income proportionate to weighted average outstanding common shares, but are not assumed to participate in the Company's net losses because they are not contractually obligated to do so. Accordingly, allocations of earnings to participating securities are included in the Company's calculations of basic and diluted earnings per share from continuing operations, discontinued operations and net income attributable to common stockholders.

During periods in which the Company realizes a loss from continuing operations attributable to common stockholders, securities or other contracts to issue common stock would be dilutive to loss per share from continuing operations; therefore, conversion into common stock is assumed not to occur.

The following tables reconcile the Company's net income (loss) attributable to common stockholders to basic net income (loss) attributable to common stockholders and diluted net income (loss) attributable to common stockholders for the three months ended March 31, 2012 and 2011:

	Three Months Ended March 31, 2012
	Continuing Operations			Discontinued Operations			Total
	(in thousands)
Net income attributable to common stockholders	$	203,924		$	10,695		$	214,619
Participating basic earnings		(2,326	)		(122	)		(2,448	)
Basic income attributable to common stockholders		201,598			10,573			212,171
Reallocation of participating earnings		68			3			71
Diluted income attributable to common stockholders	$	201,666		$	10,576		$	212,242

	Three Months Ended March 31, 2011
	Continuing Operations			Discontinued Operations			Total
	(in thousands)
Net income (loss) attributable to common stockholders	$	(71,288	)	$	419,882		$	348,594
Participating basic earnings		—			(6,140	)		(6,140	)
Basic net income (loss) attributable to common stockholders		(71,288	)		413,742			342,454
Reallocation of participating earnings		—			—			—
Diluted income (loss) attributable to common stockholders	$	(71,288	)	$	413,742		$	342,454

The following table is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three months ended March 31, 2012 and 2011:

	Three Months Ended March 31,
	2012		2011
	(in thousands)
Weighted average common shares outstanding:
Basic		122,480		115,869
Dilutive common stock options (a)		150		—
Convertible senior notes dilution		3,460		—
Contingently issuable performance unit shares		157		—
Diluted		126,247		115,869

(a) Options to purchase 98,819 shares of the Company's common stock at $113.77 were excluded from the diluted income per share calculations for the three months ended March 31, 2012 because they would have been anti-dilutive to the calculation.