Net Income Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Net Income per Share

7. Net Income per Share

We utilize the two-class method to compute net income per share.  The two-class method allocates a portion of net income to participating securities, which include unvested awards of share-based payments with non-forfeitable rights to receive dividends.  Net income allocated to unvested share-based payments is excluded from net income allocated to common shares.  Any undistributed losses resulting from dividends exceeding net income are not allocated to participating securities.  Basic net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period.  Diluted net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options.

The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations:

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2013			2012			2013			2012
	(in thousands)
Net income	$	3,488		$	5,621		$	16,661		$	19,505
Less distributed and undistributed earnings allocated to participating securities	(124		)	(162		)	(481		)	(564		)
Net income allocated to common shares	$	3,364		$	5,459		$	16,180		$	18,941
Weighted average common shares outstanding	24,820			25,095			24,858			25,091
Incremental shares from assumed conversions of common stock options	24			60			27			66
Adjusted weighted average common shares outstanding	24,844			25,155			24,885			25,157
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	16			42			16			29