Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

7.  Earnings Per Share

Basic earnings per share ("EPS") is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock and deferred stock units are considered dilutive securities. Stock options to purchase 0.1 million, 0.8 million, and 3.8 million shares of common stock were outstanding at December 31, 2011, 2010, and 2009, respectively, but were not included in the computation of diluted earnings per share because the options' exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Years Ended December 31,
	2011		2010		2009
Numerator:
Net income	$	108,996	$	112,757	$	100,985
Denominator:
Denominator for basic earnings per share—Weighted average shares		43,822		46,376		46,740
Effect of dilutive securities:
Employee stock options		1,192		1,910		1,452
Denominator for diluted earnings per share—Adjusted weighted average shares and the effect of dilutive securities		45,014		48,286		48,192
Net income per common share:
Net income per share—basic	$	2.49	$	2.43	$	2.16
Net income per share—assuming dilution	$	2.42	$	2.34	$	2.10

Common Stock Repurchases

As of December 31, 2011, the Company had Board authorization to repurchase $25 million of USI common stock. In 2011 and 2010, the Company repurchased 5,100,490 and 3,915,786 shares of USI's common stock at an aggregate cost of $162.7 million and $113.2 million, respectively. On February 24, 2012, the Board of Directors approved an expanded stock repurchase program authorizing the purchase of an additional $100 million of the Company's common stock. There were no repurchases of the Company's shares in 2009. Purchases may be made from time to time in the open market or in privately negotiated transactions. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data. During 2011, 2010 and 2009, the Company reissued 970,749; 2,238,670; and 900,696 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans.