EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2012

EARNINGS PER SHARE

EARNINGS PER SHARE

10. EARNINGS PER SHARE

        We calculate earnings per share using the two-class method. The two-class method requires that share-based awards with non-forfeitable dividends be classified as participating securities. In calculating basic earnings per share, this method requires net income to be reduced by the amount of dividends declared in the period for each participating security and by the contractual amount of dividends or other participation payments that are paid or accumulated for the period. Undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed. Recipients of certain of our restricted stock unit awards have contractual participation rights that are equivalent to those of common stockholders. Therefore, we allocate undistributed earnings to these restricted stock unit participating securities and common stock-based on their respective participation percentage.

        The two-class method also requires the denominator to include the weighted average number of shares of restricted stock units participating securities when calculating basic earnings per share. At March 31, 2012 and 2011 there are 0.5 million and 0.9 million, respectively, weighted average restricted stock units, participating securities included in the denominator. Diluted earnings per share also include the additional share equivalents from the assumed conversion of stock-based awards including options and certain restricted stock units. Conversion of stock options is calculated using the treasury stock method, subject to anti-dilution provisions.

        In computing diluted earnings per share for both the three months ended March 31, 2012 and 2011, common stock equivalents of 0.2 million shares were not included due to their anti-dilutive effect.

        Computations of basic and diluted earnings per share are presented in the following table:

	Three months ended March 31,
(In thousands, except per share data)	2012		2011
Basic earnings per share
Undistributed income	$	35,313	$	12,128
Deduct: Undistributed earnings—Restricted stock units participating securities		518		315
Common stockholders' interest in undistributed income	$	34,795	$	11,813
Weighted average common shares—Basic		34,240		33,967
Total basic earnings per common share	$	1.02	$	0.35
Diluted earnings per share
Common stockholders' interest in undistributed income	$	34,795	$	11,813
Weighted average common shares—Basic		34,240		33,967
Stock-based awards		163		14
Weighted average common shares—Diluted		34,403		33,981
Total diluted earnings per share	$	1.01	$	0.35