Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share

We calculate earnings per share (“EPS”) under the two-class method by allocating earnings to both common shares and unvested restricted stock which are considered participating securities. However, net losses are not allocated to participating securities for purposes of computing EPS under the two-class method. The following is a reconciliation of net income (loss) attributable to Granite and related weighted average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share using the two-class method:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2011		2010		2011		2010
Basic
Numerator:
Net income (loss) attributable to Granite	$	36,468	$	38,681	$	32,407	$	(8,964	)
Less: net income allocated to participating securities	469		903		491		—
Net income (loss) allocated to common shareholders for basic calculation	$	35,999	$	37,778	$	31,916	$	(8,964	)

Denominator:
Weighted average common shares outstanding, basic	38,172		37,865		38,092		37,802
Net income (loss) per share, basic	$	0.94	$	1.00	$	0.84	$	(0.24	)

Diluted
Numerator:
Net income (loss) attributable to Granite	$	36,468	$	38,681	$	32,407	$	(8,964	)
Less: net income allocated to participating securities	462		898		487		—
Net income (loss) allocated to common shareholders for diluted calculation	$	36,006	$	37,783	$	31,920	$	(8,964	)

Denominator:
Weighted average common shares outstanding, diluted	38,598		38,071		38,428		37,802
Net income (loss) per share, diluted	$	0.93	$	0.99	$	0.83	$	(0.24	)