INCOME PER SHARE

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

INCOME PER SHARE

3. INCOME PER SHARE:

The weighted average number of common shares outstanding is calculated as follows (in thousands):

	Three Months Ended
	March 31,
	2014		2013
Weighted average shares outstanding - basic		50,623		52,427
Effect of dilutive stock-based compensation		573		589
Effect of convertible notes		7,152		7,702
Effect of common stock warrants		5,725		6,002
Weighted average shares outstanding - diluted		64,073		66,720

The Company had stock-based compensation awards outstanding with respect to approximately zero and 0.2 million shares of common stock for the three months ended March 31, 2014 and 2013, respectively, that could potentially dilute earnings per share in the future but were excluded from the computation of diluted earnings per share for the respective periods as the effect of their inclusion would have been anti-dilutive.

As discussed more fully in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, in 2009 the Company issued 3.75% Convertible Senior Notes due 2014 (the “Convertible Notes”). The Company intends to settle the outstanding face value of the Convertible Notes in cash upon conversion/maturity. Any conversion spread associated with the conversion/maturity of the Convertible Notes may be settled in cash or shares of the Company’s common stock. The Convertible Notes are currently convertible through June 30, 2014 and thereafter will be convertible through the close of business on September 29, 2014 pursuant to the indenture for the Convertible Notes. See Note 15 for further disclosure.

In connection with the issuance of the Convertible Notes, the Company sold common stock purchase warrants to counterparties affiliated with the initial purchasers of the Convertible Notes whereby the warrant holders may purchase shares of the Company’s stock. At March 31, 2014, approximately 14.5 million shares of the Company’s common stock were issuable pursuant to the warrants, with an adjusted strike price of $25.31 per share, which reflects the adjustments made in connection with the cash dividend paid by the Company to stockholders on April 14, 2014. The number of shares underlying the warrants and the strike price thereof are subject to further anti-dilution adjustments, including for quarterly cash dividends paid by the Company. If the average closing price of the Company’s stock during a reporting period exceeds this strike price, these warrants will be dilutive. The warrants may only be settled in shares of the Company’s common stock. See Note 15 for further disclosure.