5. Earnings Per Share

Unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Company’s nonvested restricted stock are considered participating securities since the share-based awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest.


		Three months ended				Six months ended
	June 30,					June 30,
(in thousands, except per common share data)		2011		2010		2011		2010

Net income attributable to The Andersons, Inc.		$	45,218	$	25,169	$	62,484	$	37,434
Less: Distributed and undistributed earnings allocated to nonvested restricted stock			205		81		235		112

Earnings available to common shareholders		$	45,013	$	25,088	$	62,249	$	37,322
Earnings per share — basic:
Weighted average shares outstanding — basic			18,485		18,366		18,469		18,340

Earnings per common share — basic		$	2.44	$	1.37	$	3.37	$	2.04

Earnings per share — diluted:
Weighted average shares outstanding — basic			18,485		18,366		18,469		18,340
Effect of dilutive awards			134		97		168		126

Weighted average shares outstanding — diluted			18,619		18,463		18,637		18,466

Earnings per common share — diluted		$	2.42	$	1.36	$	3.34	$	2.02

There were no antidilutive stock-based awards outstanding for the three and six month periods ended June 30, 2011. For the three and six month periods ended June 30, 2010 there were approximately 21 thousand and 14 thousand antidilutive stock-based awards outstanding.