Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share

Earnings Per Share

D. Earnings Per Share

        Basic net loss attributable to Vertex per common share is based upon the weighted-average number of common shares outstanding during the period, excluding restricted stock that has been issued but is not yet vested. Diluted net loss attributable to Vertex per common share is based upon the weighted-average number of common shares outstanding during the period plus additional weighted-average common equivalent shares outstanding during the period when the effect is dilutive.

        Basic and diluted net income attributable to Vertex per common share are presented in conformity with the two-class method required for participating securities. Under the two-class method, earnings are allocated to (i) Vertex common shares, excluding shares of restricted stock that have been issued but have not yet vested, and (ii) participating securities, based on their respective weighted-average shares outstanding for the period. The shares of unvested restricted stock have the non-forfeitable right to receive dividends on an equal basis with other outstanding common stock. As a result, these unvested shares of restricted stock are considered participating securities that must be included in the calculation of basic and diluted net income attributable to Vertex per common share using the two-class method. Potentially dilutive shares result from the assumed exercise of outstanding stock options (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method) and the assumed conversion of convertible notes.

	Year Ended December 31,
	2011			2010			2009
	(in thousands)
Basic net income (loss) attributable to Vertex per common share calculation:
Net income (loss) attributable to Vertex common shareholders	$	29,574		$	(754,626	)	$	(642,178	)
Less: Undistributed earnings allocated to participating securities		(291	)		—			—
Net income (loss) attributable to Vertex common shareholders—basic	$	29,283		$	(754,626	)	$	(642,178	)
Basic weighted-average common shares outstanding		204,891			200,402			173,259
Basic net income (loss) attributable to Vertex per common share	$	0.14		$	(3.77	)	$	(3.71	)
Diluted net income (loss) attributable to Vertex per common share calculation:
Net income (loss) attributable to Vertex common shareholders	$	29,574		$	(754,626	)	$	(642,178	)
Less: Undistributed earnings allocated to participating securities		(285	)		—			—
Net income (loss) attributable to Vertex common shareholders—diluted	$	29,289		$	(754,626	)	$	(642,178	)
Weighted-average shares used to compute basic net income (loss) per common share		204,891			200,402			173,259
Effect of potentially dilutive securities:
Stock options		3,863			—			—
Other		53			—			—
Weighted average shares used to compute diluted net income (loss) per common share		208,807			200,402			173,259
Diluted net income (loss) attributable to Vertex per common share	$	0.14		$	(3.77	)	$	(3.71	)

        The Company did not include the securities described in the following table in the computation of the net income (loss) attributable to Vertex per common share calculations because the effect would have been anti-dilutive during each such period:

	Year Ended December 31,
	2011		2010		2009
	(in thousands)
Stock options		9,626		21,293		19,232
Convertible senior subordinated notes		8,192		8,192		1,386
Unvested restricted stock and restricted stock units		8		1,950		1,727