Stockholders' Equity

9 Months Ended

Sep. 30, 2011

Stockholders' Equity

Stockholders' Equity

(3)  Stockholders' Equity - See note (1) regarding our stock split.

Our authorized and issued shares (share amounts stated in whole numbers) consist of the following:

	Par Value		September 30, 2011		December 31, 2010
Preferred Stock	$	.01/share
Authorized				5,000,000		5,000,000
Shares issued				0		0
Common Stock	$	.01/share
Authorized				400,000,000		400,000,000
Shares issued				295,203,874		294,861,424

Dividends

On October 12, 2011, our board of directors declared a dividend of $0.14 per share of common stock. This dividend is to be paid in cash on November 22, 2011 to shareholders of record at the close of business on October 26, 2011. Historically, we have paid semi-annual dividends, which were typically paid in the first and third quarters. In 2010 and 2008, we paid a supplemental dividend in the fourth quarter. In 2011, our board of directors declared a semi-annual dividend in January, and then switched to a quarterly dividend in April, July, and October. Our board of directors expect to continue paying quarterly dividends, provided the future determination as to payment of dividends will depend on the financial needs of the Company and such other factors as deemed relevant by the board of directors.

The following table presents the dividends paid previously and declared by our board of directors for future payment by quarter (amounts are stated in per share value):

	2011		2010
First quarter	$	0.25		0.20
Second quarter		0.13		0.00
Third quarter		0.13		0.21
Fourth quarter		0.14		0.21
Total	$	0.65		0.62

Stock Options

On April 19, 2011, the compensation committee of our board of directors approved the grant under our employee stock option plan, effective at the close of business that day, of options to purchase approximately 410 thousand shares of our common stock at a strike price of $35.00 per share. The closing stock price on the date of grant was $31.78 per share.

The following tables summarize the details of previous grants made under our stock option plan and the assumptions used to value the grants. The grants listed below exclude grants that have expired due to the lapse of time. All options granted were effective at the close of business on the date of grant.

	Options granted		Option exercise (strike) price		Closing stock  price on date of grant
							September 30, 2011
							Options		Options
Date of grant							outstanding		vested
April 19, 2011		410,000	$	35.00	$	31.78		410,000		0
April 20, 2010		530,000	$	30.00	$	27.13		400,000		0
April 21, 2009		790,000	$	27.00	$	17.61		600,000		0
April 15, 2008		550,000	$	27.00	$	24.35		360,000		0
April 17, 2007		4,380,000	$	22.50	$	20.15		3,432,550		1,725,550

Date of grant	Risk-free interest rate			Expected life of option in years		Expected dividend yield			Expected stock volatility			Estimated fair value of stock option
April 19, 2011		2.1	%		5.00		1.6	%		39.33	%	$	11.20
April 20, 2010		2.6	%		5.00		1.5	%		39.10	%	$	8.14
April 21, 2009		1.9	%		5.00		1.0	%		38.80	%	$	3.64
April 15, 2008		2.7	%		5.00		1.0	%		30.93	%	$	7.75
April 17, 2007		4.6	%		4.85		1.0	%		31.59	%	$	5.63

All of the options in the tables above vest and become exercisable over a period of up to eight years. Each option will terminate, to the extent not previously exercised, 13 months after the end of the relevant vesting period.

The fair value of each share-based option is estimated on the date of grant using a Black-Scholes valuation method that uses the assumptions listed above. The expected life is the average length of time over which we expect the employee groups will exercise their options, which is based on historical experience with similar grants. Expected volatilities are based on the movement of our stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate is based on the U.S. Treasury rate over the expected life at the time of grant. The dividend yield is estimated over the expected life based on our current dividend payout, historical dividends paid, and expected future cash dividends.

Compensation expense equal to the grant date fair value is recognized for all of these awards over the vesting period. The stock-based compensation expense for the nine month periods ended September 30, 2011 and 2010 was $2,925 and $3,015, respectively. Unrecognized compensation expense related to outstanding stock options as of September 30, 2011 was $16,214 and is expected to be recognized over a weighted average period of 4.86 years. Any future changes in estimated forfeitures will impact this amount.

Earnings Per Share

The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share related to our stock option plan and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive (share amounts stated in whole numbers):

	Nine-month period				Three-month period
Reconciliation	2011		2010		2011		2010
Basic-weighted average shares outstanding		294,994,553		294,861,424		295,144,175		294,861,424
Weighted shares assumed upon exercise of stock options		768,209		0		750,788		0
Diluted-weighted average shares outstanding		295,762,762		294,861,424		295,894,963		294,861,424

	Nine-month period				Three-month period
Summary of anti-dilutive options excluded	2011		2010		2011		2010
Options to purchase shares of common stock		668,791		5,319,890		818,261		5,466,413
Weighted-average exercise prices of anti-dilutive options	$	31.85	$	23.90	$	32.51	$	24.12

Any dilutive impact summarized above would relate to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive option securities then outstanding.