Net Income Per Share

3 Months Ended

Mar. 31, 2012

Net Income 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.  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 March 31,
	2012			2011
(in thousands)
Net income	$	13,884		$	8,786
Less income allocated to participating securities		(402	)		(264	)
Net income allocated to common shares	$	13,482		$	8,522
Weighted average common shares outstanding		25,087			25,488
Incremental shares from assumed conversions of common stock options		71			119
Adjusted weighted average common shares outstanding		25,158			25,607
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect		16			-