Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic and dilutive income per common share from continuing operations attributable to OM Group, Inc. common stockholders:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012			2011		2012			2011
(in thousands, except per share amounts)
Income (loss) from continuing operations attributable to
OM Group, Inc. common stockholders	$	(22,513	)	$	24,709	$	(10,428	)	$	55,601
Weighted average shares outstanding — basic	31,882			30,535		31,878			30,531
Dilutive effect of stock options and restricted stock	—			186		—			177
Weighted average shares outstanding — assuming dilution	31,882			30,721		31,878			30,708
Earnings per common share:
Income (loss) from continuing operations attributable to
OM Group, Inc. common stockholders — basic	$	(0.71	)	$	0.81	$	(0.33	)	$	1.82
Income (loss) from continuing operations attributable to
OM Group, Inc. common stockholders — assuming dilution	$	(0.71	)	$	0.80	$	(0.33	)	$	1.81

The following table sets forth the computation of basic and diluted net income per common share attributable to OM Group, Inc. common stockholders:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012			2011		2012			2011
(in thousands, except per share amounts)
Net income (loss) attributable to OM Group, Inc. common stockholders	$	(22,339	)	$	24,620	$	(10,390	)	$	55,272
Weighted average shares outstanding — basic	31,882			30,535		31,878			30,531
Dilutive effect of stock options and restricted stock	—			186		—			177
Weighted average shares outstanding — assuming dilution	31,882			30,721		31,878			30,708
Earnings per common share:
Net income (loss) attributable to OM Group, Inc. common stockholders — basic	$	(0.70	)	$	0.81	$	(0.33	)	$	1.81
Net income (loss) attributable to OM Group, Inc. common stockholders — assuming dilution	$	(0.70	)	$	0.80	$	(0.33	)	$	1.80

We use the treasury stock method to calculate the effect of outstanding share-based compensation awards, which requires us to compute total employee proceeds as the sum of (a) the amount the employee must pay upon exercise of the award, (b) the amount of unearned share-based compensation costs attributed to future services and (c) the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the award. Shares granted under share-based compensation awards for which the total employee proceeds exceed the average market price over the applicable period have an anti-dilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share.

As we had a loss from continuing operations in the three and six months ended June 30, 2012, the effect of including dilutive securities in the earnings per share calculation would have been antidilutive. Accordingly, all shares under share-based compensation awards were excluded from the calculation of loss from continuing operations attributable to OM Group, Inc. common stockholders assuming dilution and net loss attributable to OM Group, Inc. common stockholders assuming dilution for the three and six months ended June 30, 2012. In the three and six months ended June 30, 2011, stock options to purchase 0.1 million shares and 0.1 million shares, respectively, of common stock were excluded from the calculation of dilutive earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would have been anti-dilutive.