Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v2.4.0.6
Earnings Per Share
 12 Months Ended
Dec. 31, 2011
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE 16—EARNINGS PER SHARE

Earnings per share ("EPS"), is presented on both a basic and diluted basis. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted stock units determined using the treasury stock method.

 

A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows (in thousands, except per share amounts):

 

     Year Ended December 31,  
     2011      2010      2009  

Weighted average common shares outstanding, used in computing basic earnings per share

      33,808         33,725         33,846   

Effect of dilutive stock options and restricted stock units

      396         367         135   
  

 

 

     

 

 

     

 

 

  

Weighted-average common shares outstanding, used in computing diluted earnings per share

      34,204         34,092         33,981   
  

 

 

     

 

 

     

 

 

  

Earnings per share of common stock:

         

Basic

    $ 3.06       $ 2.28       $ 1.98   

Diluted

      3.03         2.26         1.97   

Stock options and service-based restricted stock units representing 452,907, 480,707 and 1,562,064 shares of common stock for the years ended December 31, 2011, 2010 and 2009, respectively, were outstanding but were excluded in the computation of diluted EPS because their effect would be anti-dilutive as a result of applying the treasury stock method. In addition, performance-based restricted stock units representing 34,448, 43,323 and 44,043 shares for the years ended December 31, 2011, 2010 and 2009, respectively, were outstanding but were excluded from the computation of diluted EPS because these shares were subject to performance conditions that had not been met.