Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 10 – Earnings Per Share

The following table sets forth the computation of basic and diluted income per common share from continuing operations attributable to OM Group, Inc. common stockholders (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Income from continuing operations attributable to OM Group, Inc. common stockholders	$	24,709	$	13,307	$	55,601	$	35,770
Weighted average shares outstanding — basic		30,535		30,471		30,531		30,388
Dilutive effect of stock options and restricted stock		186		120		177		134
Weighted average shares outstanding — assuming dilution		30,721		30,591		30,708		30,522
Earnings per common share:
Income from continuing operations attributable to OM Group, Inc. common stockholders — basic	$	0.81	$	0.44	$	1.82	$	1.18
Income from continuing operations attributable to OM Group, Inc. common stockholders — assuming dilution	$	0.80	$	0.43	$	1.81	$	1.17

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net income attributable to OM Group, Inc. common stockholders	$	24,620	$	12,789	$	55,272	$	35,389
Weighted average shares outstanding — basic		30,535		30,471		30,531		30,388
Dilutive effect of stock options and restricted stock		186		120		177		134
Weighted average shares outstanding — assuming dilution		30,721		30,591		30,708		30,522
Earnings per common share:
Net income attributable to OM Group, Inc. common stockholders — basic	$	0.81	$	0.42	$	1.81	$	1.16
Net income attributable to OM Group, Inc. common stockholders — assuming dilution	$	0.80	$	0.42	$	1.80	$	1.16

The Company uses the treasury stock method to calculate the effect of outstanding share-based compensation awards, which requires the Company 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. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period.

The following table sets forth the non-vested share-based compensation awards that could potentially dilute earnings per share in the future which were not included in the fully diluted computation (in thousands):  

Three Months Ended June 30,		Six Months Ended June 30,
2011	2010	2011	2010
121	198	112	179