Earnings Per Share

9 Months Ended

Sep. 30, 2011

7. Earnings Per Share

Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the effect of restricted stock-based awards and common shares issuable upon exercise of stock options and warrants. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options outstanding were exercised and all convertible notes have been converted into common stock.

As of September 30, 2011, of the total potentially dilutive shares related to restricted stock-based awards, stock options and warrants, 0.4 million were anti-dilutive, compared to 1.7 million as of September 30, 2010.

As of September 30, 2011, 204,918 of the performance related restricted stock-based awards issued in connection with the Company’s employment agreement with its chairman, chief executive officer and president were anti-dilutive.

Warrants issued in connection with the Company’s 2.50% Convertible Notes financing and 1.875% Convertible Notes financing were anti-dilutive and therefore not included in this calculation. Portions of the 2.50% Convertible Notes and 1.875% Convertible Notes that would be subject to conversion to common stock were anti-dilutive as of September 30, 2011 and therefore not included in this calculation.

A reconciliation of weighted average shares used in calculating basic and diluted earnings per share follows:

	For the Three Months Ended				For the Nine Months Ended
(000's omitted)	September 30, (unaudited)				September 30, (unaudited)
	2011		2010		2011		2010
Basic		73,297		72,326		73,016		72,013
Effect of exercise of stock options		1,117		1,980		1,187		1,960
Effect of contingent common stock issuance		-		-		48		48
Effect of assumed vesting of restricted stock		1,332		614		1,269		611
Diluted		75,746		74,920		75,520		74,632