Earnings Per Share

9 Months Ended

Sep. 30, 2011

Basic earnings per share (“EPS”) is computed by dividing net income attributable to Amkor common shareholders by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding includes restricted shares held by retirement eligible recipients and excludes treasury stock. Unvested share-based compensation awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method. As discussed in Note 3, we grant restricted shares which entitle recipients to voting and nonforfeitable dividend rights from the date of grant. As a result, we have applied the two-class method to determine earnings per share.

Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options, unvested restricted shares and convertible debt. The following table summarizes the computation of basic and diluted EPS:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2011			2010			2011			2010
	(In thousands, except per share data)
Net income attributable to Amkor	$	27,367		$	78,020		$	66,958		$	181,367
Income allocated to participating securities	(106		)	(159		)	(259		)	(369		)
Net income available to Amkor common stockholders	27,261			77,861			66,699			180,998
Adjustment for dilutive securities on net income:
Net income allocated to participating securities in basic calculation	106						259
Interest on 2.5% convertible notes, due 2011, net of tax	—			329			—			988
Interest on 6.25% convertible notes, due 2013, net of tax	—			1,592			—			4,777
Interest on 6.0% convertible notes, due 2014, net of tax	4,026			4,026			12,077			12,077
Net income attributable to Amkor — diluted	$	31,393		$	83,808		$	79,035		$	198,840

Weighted average shares outstanding — basic	195,364			183,340			195,510			183,280
Effect of dilutive securities:
Stock options	46			161			213			276
Unvested restricted shares	—			66			148			39
2.5% convertible notes, due 2011	—			2,919			—			2,919
6.25% convertible notes, due 2013	—			13,351			—			13,351
6.0% convertible notes, due 2014	82,658			82,658			82,658			82,658
Weighted average shares outstanding — diluted	278,068			282,495			278,529			282,523
Net income attributable to Amkor per common share:
Basic	$	0.14		$	0.42		$	0.34		$	0.99
Diluted	0.11			0.30			0.28			0.70

The following table summarizes the potential shares of common stock that were excluded from diluted EPS, because the effect of including these potential shares was antidilutive:



	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2011	2010	2011	2010
	(In thousands, except per share data)
Stock options and restricted share awards	6,122	6,900	5,158	6,819
2.5% convertible notes, due 2011	—	—	1,459	—
6.25% convertible notes, due 2013	—	—	929	—
Total potentially dilutive shares	6,122	6,900	7,546	6,819