13. WEIGHTED AVERAGE COMMON SHARES

The weighted average number of common shares used to compute basic and diluted net (loss) income per share for the quarters and years to date ended September 30, 2012 and 2011 were as follows:


	For the Quarters Ended September 30,				For the Years to Date Ended September 30,
	2012		2011		2012		2011
	(Shares in thousands)
Basic common shares outstanding		66,100		73,582		66,325		74,858
Common stock equivalents		—		476		—		660

Diluted common shares outstanding		66,100		74,058		66,325		75,518

Basic net (loss) income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock and restricted stock units were settled for common shares during the period.

Due to the fact that we reported a loss from continuing operations for the quarter and year to date ended September 30, 2012, potential common stock equivalents are excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings Per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net income per share for the quarter and year to date ended September 30, 2012. For the quarter and year to date ended September 30, 2011, certain unexercised stock option awards, unvested restricted stock and unvested restricted stock units are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. The anti-dilutive awards that were excluded from our computations of diluted earnings per share were 3.5 million for the quarter ended September 30, 2011 and 3.0 million for the year to date ended September 30, 2011.

In addition to the common stock issued upon the exercise of employee stock options and the granting of restricted stock, we issued less than 0.1 million shares for each of the quarters ended September 30, 2012 and 2011 upon the purchase of common stock pursuant to our employee stock purchase plan. For the years to date ended September 30, 2012 and 2011, we issued 0.1 million shares and less than 0.2 million shares, respectively, upon the purchase of common stock pursuant to our employee stock purchase plan.