Earnings (Loss) per Share of Common Stock

9 Months Ended

Sep. 30, 2012

Earnings (Loss) per Share of Common Stock

Note 10—Earnings (Loss) per Share of Common Stock

The Company accounts for and discloses net earnings (loss) per share using the treasury stock method. Net earnings (loss) per common share, or basic earnings (loss) per share, is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding. Net earnings (loss) per common share assuming dilutions, or diluted earnings (loss) per share, is computed by reflecting the potential dilution from the exercise of in-the-money stock options, non-vested restricted stock and units, the Company’s issued warrants, and the Company’s 2018 Convertible Notes “as if” converted.

The Company’s basic and diluted weighted-average number of common shares outstanding at September 30, 2012 and 2011 were as follows:

	Three Months Ended September, 30				Nine Months Ended September, 30
	2012		2011		2012		2011
	(In thousands)
Basic		70,956		70,122		70,718		70,037
Incremental common stock equivalents		—		—		—		—
Diluted		70,956		70,122		70,718		70,037

At September 30, 2012, and 2011, in-the-money stock options and unvested restricted stock amounting to 3.7 million and 1.9 million shares, respectively, were excluded from the computation of diluted earnings (loss) per share as their effect would have been anti-dilutive, since the Company reported a net loss for these periods. In addition, at September 30, 2012, warrants to purchase an aggregate of 4.0 million shares of the Company’s Common Stock at an exercise price equal to $1.863 per share in connection with the debt exchange transaction between the Company and certain holders of its 2018 Convertible Notes, described more fully in Note 7, were excluded from the computation of diluted earnings (loss) per share as their effect would have been anti-dilutive, since the Company reported a net loss for the period. At September 30, 2012 and 2011, approximately 9.3 million and 19.9 million shares, respectively, related to the Company’s 2018 Convertible Notes, calculated “as if” the 2018 Convertible Notes had been converted, were excluded from the computation of diluted earnings (loss) per share as their effect would have been anti-dilutive, since the Company reported a net loss for the period.