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
	September 30, 2011				September 30, 2010
	Income			Shares	Income			Shares
Basic:
Net income applicable to common shareholders	$	46,016			$	26,161
Less: Undistributed net income allocable to participating securities		(549	)			(356	)
Net income applicable to common stock	$	45,467		104,700	$	25,805		104,090


	Three Months Ended			Three Months Ended
	September 30, 2011			September 30, 2010
	Income		Shares	Income		Shares
Diluted:
Net income per common share – Basic	$	45,467	104,700	$	25,805	104,090
Effect of dilutive securities:
Stock options		—	93		—	22
Undistributed earnings reallocated to participating securities		2	—		5	—
Convertible Senior Notes		—	—		—	—
Convertible preferred stock		10	361		—	1,195
Net income per common share – Diluted	$	45,479	105,154	$	25,810	105,307


	Nine Months Ended				Nine Months Ended
	September 30, 2011				September 30, 2010
	Income			Shares	Income			Shares
Basic:
Net income (loss) applicable to common shareholders	$	113,186			$	(77,281	)
Less: Undistributed net income allocable to participating securities		(1,403	)			—
Net income (loss) applicable to common stock	$	111, 783		104,616	$	(77,281	)	103,772


	Nine Months Ended			Nine Months Ended
	September 30, 2011			September 30, 2010
	Income		Shares	Income			Shares
Diluted:
Net income (loss) per common share – Basic	$	111,783	104,616	$	(77,281	)	103,772
Effect of dilutive securities:
Stock options		—	84		—		—
Undistributed earnings reallocated to participating securities		6	—		—		—
Convertible Senior Notes		—	—		—		—
Convertible preferred stock		30	361		—		—
Net income (loss) per common share – Diluted	$	111,819	105,061	$	(77,281	)	103,772

We had a net loss from continuing operations for the nine-month period ended September 30, 2010. Accordingly, we had no dilutive securities during this reporting period 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 nine-month period ended September 30, 2010 assuming we had earnings from continuing operations (in thousands):