Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

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, 2013, of the total potentially dilutive shares related to restricted stock-based awards, stock options and warrants, less than 0.1 million were anti-dilutive, compared to 0.2 million as of September 30, 2012.

As of September 30, 2013, none of the performance related restricted stock-based awards issued in connection with the Company’s named executive officers were anti-dilutive.

As of September 30, 2013, certain performance related restricted stock-based awards were deemed to have met the performance targets. As such these performance related restricted stock-based awards are considered earned but not issued, and therefore have been included in this calculation.

Warrants issued in connection with the Company’s 1.50% Convertible Notes financing and 2.50% Convertible Notes financing were anti-dilutive and therefore not included in this calculation. Portions of the 1.50% Convertible Notes and the 2.50% Convertible Notes that would be subject to conversion to common stock were dilutive as of September 30, 2013 and therefore have been included in this calculation.

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

(000’s omitted)	For the Three Months Ended September 30, (unaudited)				For the Nine Months Ended September 30, (unaudited)
	2013		2012		2013		2012
Basic		53,325		68,242		57,966		70,284
Effect of exercise of stock options		1,158		987		1,123		976
Effect of contingent common stock issuance		—		—		—		48
Effect of assumed vesting of performance related restricted stock-based awards		180		—		60		—
Effect of assumed vesting of restricted stock		1,489		1,288		1,450		1,213
Effect of portions of convertible notes subject to conversion		1,653		—		551		—
Diluted		57,805		70,517		61,150		72,521