Note 7 – Earnings Per Share

We apply the two-class method when computing earnings per share, which requires that net income per share for each class of shares entitled to dividends be calculated assuming all of our net income is distributed as dividends to these shareholders based on their contractual rights.

The following table presents the calculation of basic and diluted earnings per share of common stock outstanding:

		0000000		0000000		0000000		0000000
	Three Months Ended December 31,
	2011				2010
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	59,255	$	59,255	$	53,052	$	53,052

Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		71,463		71,463		70,972		70,972
Employee stock options		0		836		0		657

Total weighted average shares outstanding		71,463		72,299		70,972		71,629

Earnings per Share:
Earnings per share	$	0.83	$	0.82	$	0.75	$	0.74

		0000000		0000000		0000000		0000000
	Six Months Ended December 31,
	2011				2010
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	107,622	$	107,622	$	80,440	$	80,440

Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		71,265		71,265		70,818		70,818
Employee stock options		0		820		0		546

Total weighted average shares outstanding		71,265		72,085		70,818		71,364

Earnings per Share:
Earnings per share	$	1.51	$	1.49	$	1.14	$	1.13

Options to purchase 1,767,021 and 1,752,421 shares of our common stock were outstanding for the three months ended December 31, 2011 and 2010, respectively, and excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, restricted shares and restricted stock units of 8,274 and 18,404 were outstanding for the three months ended December 31, 2011 and 2010, respectively, and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.

Options to purchase 1,699,565 and 1,702,404 shares of our common stock were outstanding for the six months ended December 31, 2011 and 2010, respectively, and excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, restricted shares and restricted stock units of 4,341 and 13,733 were outstanding during the six months ended December 31, 2011 and 2010, respectively, and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.

The conversion terms of our $400 million of 1.25 percent convertible senior notes due October 15, 2012 (the "Convertible Senior Notes") will affect the calculation of diluted earnings per share if the price of our common stock exceeds the conversion price of the Convertible Senior Notes. The initial conversion price of the Convertible Senior Notes was approximately $104 per share, subject to adjustment in specified circumstances as described in the indenture governing the Convertible Senior Notes (the "Indenture"). Upon conversion, a holder of the Convertible Senior Notes will receive an amount per Convertible Senior Note in cash equal to the lesser of $1,000 or the conversion value of the Convertible Senior Notes, determined in the manner set forth in the Indenture. If the conversion value exceeds $1,000, we will deliver $1,000 in cash and, at our option, cash or common stock or a combination of cash and common stock for the conversion price in excess of $1,000. The conversion option is indexed to our common stock and therefore is classified as equity. The conversion option will not result in an adjustment to net income in calculating diluted earnings per share. The dilutive effect of the conversion option will be calculated using the treasury stock method. Therefore, conversion settlement shares will be included in diluted shares outstanding if the price of our common stock exceeds the conversion price of the Convertible Senior Notes.

The Convertible Senior Notes had no effect on the computation of diluted earnings per share for the three and six months ended December 31, 2011 and 2010. Refer to Note 9 – Debt for further information.