Earnings Per Share and Comprehensive Earnings

6 Months Ended

Jun. 30, 2011

Earnings Per Share and Comprehensive Earnings

Earnings Per Share and Comprehensive Earnings

5. Earnings Per Share and Comprehensive Earnings

Basic earnings per share is calculated by dividing earnings available to common shareholders by the weighted average shares outstanding—basic during each period. Diluted earnings per share is calculated by dividing earnings available to common shareholders by the weighted average shares outstanding—dilutive, which includes the effect of potentially dilutive securities. Potentially dilutive securities consist of unvested restricted stock awards and outstanding stock options.

The two-class method of computing earnings per share is required for those entities that have participating securities. The two-class method is an earnings allocation formula that determines earnings per share for participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Unvested restricted stock issued prior to January 1, 2010 under the Company's equity incentive plans has the right to receive non-forfeitable dividends, participating on an equal basis with common stock, and thus are classified as participating securities. Unvested restricted stock issued subsequent to January 1, 2010 under the Company's equity incentive plans does not participate in dividends. Stock options issued under the Company's equity incentive plans do not participate in dividends.

The following table shows the computation of basic and diluted earnings per share for the three and six months ended June 30, 2011 and 2010:

	Three Months Ended June 30,				Six Months Ended June 30,

(in thousands, except per share data)	2011		2010		2011		2010
Net earnings	$	105,166	$	89,023	$	52,669	$	106,692
Less: earnings allocable to participating securities		1,012		1,713		544		2,133

Earnings available for common shareholders	$	104,154	$	87,310	$	52,125	$	104,559
Basic earnings per share	$	1.93	$	1.65	$	0.97	$	2.01

Diluted earnings per share	$	1.90	$	1.64	$	0.95	$	2.00

Weighted average shares outstanding—basic		54,004		52,965		53,936		52,027
Add: Dilutive effects of stock options and RSUs		704		448		755		380

Weighted average shares outstanding—dilutive		54,708		53,413		54,691		52,407

All options to purchase shares were included in the diluted earnings per share calculation for the three and six months ended June 30, 2011. Options to purchase 0.8 million shares and 1.2 million shares were not included in the diluted earnings per share calculation for the three and six months ended June 30, 2010, respectively, because their effect would have been anti-dilutive.

Comprehensive earnings

Comprehensive earnings is a term used to refer to net earnings plus other comprehensive earnings. Other comprehensive earnings is comprised of revenues, expenses, gains, and losses that, under GAAP, are reported as separate components of shareholders' equity instead of net earnings. The components of other comprehensive earnings were as follows:

	Three months ended June 30,				Six months ended June 30,

(in thousands)	2011		2010		2011		2010
Net earnings	$	105,166	$	89,023	$	52,669	$	106,692
Amortization of Accumulated other comprehensive loss related to de-designated hedges, net of income tax benefits of $5,837, $2,478, $11,673, and $4,563, respectively		9,522		4,044		19,045		7,444

Comprehensive earnings	$	114,688	$	93,067	$	71,714	$	114,136

- Definition

This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Also, this label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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