Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share

Note 2 – Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods.

	Three Months Ended March 31,
	2013			2012
	(in thousands, except per share data)
Income (numerator):
Basic:
Net income	$	40,758		$	50,974
Net income attributable to participating securities		(770	)		(877	)
Net income attributable to common stock—basic	$	39,988		$	50,097
Diluted:
Net income	$	40,758		$	50,974
Net income attributable to participating securities		(770	)		(876	)
Net income attributable to common stock—diluted	$	39,988		$	50,098
Weighted average shares (denominator):
Weighted average shares—basic		48,619			48,254
Diluted effect of stock options		38			45
Weighted average shares—diluted		48,657			48,299
Basic income per common share	$	0.82		$	1.04
Diluted income per common share	$	0.82		$	1.04

Stock options that were considered antidilutive because the exercise price of the options exceeded the average price of our common stock for the applicable period totaled approximately 347,000 and 372,000 shares during the three months ended March 31, 2013 and 2012, respectively. During the three months ended March 31, 2013 and 2012, respectively, approximately 291,000 and 232,000 shares of common stock were issued from authorized shares upon the vesting (lapse of forfeiture restrictions) of restricted stock by employees and nonemployee directors.

Because it is management’s stated intention to redeem the principal amount of our 1 ³/₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 4 – Long-Term Debt) in cash, we have used the treasury method for determining potential dilution in the diluted earnings per share computation. Since the average price of our common stock was less than the effective conversion price for such notes during the reporting period, the 2017 Convertible Notes were not dilutive for such period. Additionally, since the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 4 – Long-Term Debt) for the reporting period, such warrants were also not dilutive for such period.