Note 10 – Earnings Per Share

We have shares of restricted stock issued and outstanding, some of which remain subject to certain vesting requirements. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding common stock and are thus considered participating securities. Under applicable accounting guidance, the undistributed earnings for each period are allocated based on the participation rights of both the common shareholders and holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, we are required to compute earnings per share ("EPS") amounts under the two class method in periods in which we have earnings from continuing operations. For periods in which we have a net loss we do not use the two class method as holders of our restricted shares are not contractually obligated to share in such losses.

The presentation of basic EPS amounts on the face of the accompanying condensed consolidated statements of operations is computed by dividing the net income available to common shareholders by the weighted average shares of outstanding common stock. The calculation of diluted EPS is similar to basic EPS, except that the denominator includes dilutive common stock equivalents and the income included in the numerator excludes the effects of the impact of dilutive common stock equivalents, if any. The computations of the numerator (Income) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands):


		Three Months Ended				Three Months Ended
		June 30, 2011				June 30, 2010
		Income		Shares		Income		Shares
Basic:
Net income (loss) applicable to common shareholders	$	41,313			$	(85,551	)
Less: Undistributed net income allocable to participating securities		(514	)			0
Net income (loss) applicable to common stock	$	40,799		104,673	$	(85,551	)	104,125


		Three Months Ended June 30, 2011			Three Months Ended June 30, 2010
		Three Months Ended June 30, 2011			Three Months Ended June 30, 2010
		Income	Shares		Income		Shares
Diluted:
Net income (loss) per common share – Basic	$	40,799	104,673	$	(85,551	)	104,125
Effect of dilutive securities:
Stock options		0	106		0		0
Undistributed earnings reallocated to participating securities		3	0		0		0
Convertible Senior Notes		0	0		0		0
Convertible preferred stock		10	361		0		0
Net income (loss) per common share – Diluted	$	40,812	105,140	$	(85,551	)	104,125


		Six Months Ended				Six Months Ended
		June 30, 2011				June 30, 2010
		Income		Shares		Income		Shares
Basic:
Net income (loss) applicable to common shareholders	$	67,170			$	(103,442	)
Less: Undistributed net income allocable to participating securities		(850	)			—
Net income (loss) applicable to common stock	$	66,320		104,573	$	(103,442	)	103,610


		Six Months Ended June 30, 2011			Six Months Ended June 30, 2010
		Six Months Ended June 30, 2011			Six Months Ended June 30, 2010
		Income	Shares		Income		Shares
Diluted:
Net income (loss) per common share – Basic	$	66,320	104,573	$	(103,442	)	103,610
Effect of dilutive securities:
Stock options		0	90		0		0
Undistributed earnings reallocated to participating securities		4	0		0		0
Convertible Senior Notes		0	0		0		0
Convertible preferred stock		20	361		0		0
Net income (loss) per common share – Diluted	$	66,344	105,024	$	(103,442	)	103,610

We had a net loss from continuing operations for both the three- and six-month periods ended June 30, 2010. Accordingly, we had no dilutive securities during these reporting periods as their inclusion would have had an anti-dilutive effect on our EPS calculation, meaning it would have increased our reported EPS amount. The following table provides the effect the excluded securities would have had on our diluted shares calculation for the three- and six-month periods ended June 30, 2010 assuming we had earnings from continuing operations (in thousands):

	Three Months	Six Months
Diluted shares (as reported)	104,125	103,610
Stock options	94	80
Convertible preferred stock	1,195	1,689
Total	105,414	105,379