Earnings per Share

6 Months Ended

Jun. 30, 2012

Earnings per Share

11. Earnings per Share

The Company has unvested shares of restricted stock outstanding that are considered participating securities and, therefore, computes basic and diluted earnings per share under the two-class method. Basic earnings per share for the periods are based upon the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share include the effect of certain stock options.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net income	$	115,501		$	81,049		$	203,314		$	164,593
Less:
Net income attributable to participating securities		(606	)		(715	)		(1,240	)		(1,492	)
Net income attributable to common shareholders	$	114,895		$	80,334		$	202,074		$	163,101

The following table reconciles the denominator for the basic and diluted earnings per share computations shown in the consolidated statements of operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Weighted average common shares—basic		66,298,633		65,999,090		66,203,965		65,873,023
Plus incremental shares from:
Assumed exercise of options		350,263		425,975		399,741		396,800
Weighted average common shares—diluted		66,648,896		66,425,065		66,603,706		66,269,823
Earnings per share:
Basic	$	1.73	$	1.22	$	3.05	$	2.48
Diluted	$	1.72	$	1.21	$	3.03	$	2.46

Excluded from the computation of diluted earnings per share are options to purchase 327,669 and 112,154 shares of common stock for the three months ended June 30, 2012 and 2011, respectively, and 346,957 and 178,522 shares of common stock for the six months ended June 30, 2012 and 2011, respectively. These options were outstanding during the periods reported but were excluded because the option exercise price was greater than the average market price of the shares.