Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per common share is calculated by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income attributable to common stockholders, adjusted for the effect of assumed conversions of convertible notes and preferred stock, by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive.

In connection with the sale of the 2008 Notes, the Company entered into a Share Lending Agreement for 3.8 million shares of the Company’s common stock (see Note 10 – Share Lending Agreement). Contractual undertakings of the Borrower have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, and all shares outstanding under the Share Lending Agreement are contractually obligated to be returned to the Company. As a result, shares loaned under the Share Lending Agreement are not considered outstanding for the purpose of computing and reporting earnings per share. The Share Lending Agreement was terminated on January 22, 2013 upon the return of all Borrowed Shares to the Company.

On February 4, 2011, the Company exercised its contractual right to mandatorily convert all outstanding shares of convertible preferred stock into common stock. On February 15, 2013, the Company repurchased all of the remaining $5.2 million of outstanding 2008 Notes for cash.

For the years ended December 31, 2013 and 2011, convertible notes were excluded from the calculation of diluted earnings per common share as inclusion would be anti-dilutive. At December 31, 2013, 2012 and 2011, approximately 0.1 million, 0.1 million and 1.1 million stock options, respectively, with an exercise price in excess of the average market price of the Company’s common stock were also excluded from the calculation of diluted earnings per share.

Basic and diluted earnings per common share are as follows (in thousands, except per share data):

	Year ended December 31,
	2013		2012		2011
Net income attributable to common stockholders - Basic	$	36,178	$	49,791	$	26,540
Impact of assumed conversions:
Interest on convertible notes	—		1,959		—
Dividends on preferred stock	—		—		141
Net income attributable to common stockholders - Diluted	$	36,178	$	51,750	$	26,681
Weighted average common shares outstanding - Basic	51,346		48,185		44,229
Assumed conversions:
Incremental common shares from warrants	1,355		1,560		2,222
Incremental common shares from stock options	1,133		992		747
Incremental common shares from restricted stock units	7		116		—
Incremental common shares from convertible preferred stock before conversion	—		—		440
Incremental common shares from convertible senior notes	—		2,701		—
Weighted average common shares outstanding - Diluted	53,841		53,554		47,638
Basic earnings per common share	$	0.70	$	1.03	$	0.60
Diluted earnings per common share	$	0.67	$	0.97	$	0.56