Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

Note 11 – 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 September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders	$	(68,488	)	$	23,198	$	(12,887	)	$	58,968
Weighted average shares outstanding — basic		31,382			30,474		30,817			30,417
Dilutive effect of stock options and restricted stock		—			86		—			118
Weighted average shares outstanding — assuming dilution		31,382			30,560		30,817			30,535
Earnings per common share:
Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders — basic	$	(2.18	)	$	0.76	$	(0.42	)	$	1.94
Income (loss) from continuing operations attributable to OM Group, Inc. common stockholders — assuming dilution	$	(2.18	)	$	0.76	$	(0.42	)	$	1.93

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 September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Net income (loss) attributable to OM Group, Inc. common stockholders	$	(68,254	)	$	24,201	$	(12,982	)	$	59,590
Weighted average shares outstanding — basic		31,382			30,474		30,817			30,417
Dilutive effect of stock options and restricted stock		—			86		—			118
Weighted average shares outstanding — assuming dilution		31,382			30,560		30,817			30,535
Earnings per common share:
Net income (loss) attributable to OM Group, Inc. common stockholders — basic	$	(2.17	)	$	0.79	$	(0.42	)	$	1.96
Net income (loss) attributable to OM Group, Inc. common stockholders — assuming dilution	$	(2.17	)	$	0.79	$	(0.42	)	$	1.95

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):

2011	2010	2011	2010
—	301	—	220

As the Company had a loss from continuing operations and a net loss for the three months and nine months ended September 30, 2011, the effect of including dilutive securities in the earnings per share calculation would have been antidilutive. Accordingly, all stock options and restricted stock were excluded from the calculation of loss from continuing operations attributable to OM Group, Inc. common shareholders assuming dilution and net loss per common share assuming dilution for the three months and nine months ended September 30, 2011.