Net Income Per Share

9 Months Ended

Sep. 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   September 30,						Nine Months Ended   September 30,
	2013			2012			2013			2012
	(in thousands)
Net income	$	10,082		$	11,452		$	26,743		$	30,957
Less distributed and undistributed earnings allocated to participating securities	(289		)	(334		)	(769		)	(898		)
Net income allocated to common shares	$	9,793		$	11,118		$	25,974		$	30,059
Weighted average common shares outstanding	24,849			24,923			24,855			25,034
Incremental shares from assumed conversions of common stock options	18			57			24			63
Adjusted weighted average common shares outstanding	24,867			24,980			24,879			25,097
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	—			41			10			33