Net Earnings Per Share

9 Months Ended

Sep. 30, 2012

Net Earnings Per Share

6. Net Earnings Per Share

Basic net earnings per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for each period presented. Diluted net earnings per share is computed using net income divided by the sum of Weighted Shares and common equivalent shares (CESs) outstanding for each period presented using the treasury stock method.

The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three and nine months ended September 30, 2012 and 2011 (in thousands, except per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net income	$	13,809		$	14,877		$	39,383		$	34,382
Earnings per share:
Basic	$	0.71		$	0.74		$	1.99		$	1.67
Effect of CESs		(0.02	)		(0.04	)		(0.06	)		(0.08	)
Diluted	$	0.69		$	0.70		$	1.93		$	1.59
Weighted average number of shares:
Basic		19,568			20,156			19,745			20,623
Effect of CESs		562			969			627			1,033
Diluted		20,130			21,125			20,372			21,656

Weighted average shares issuable upon the exercise of stock options that were not included in the calculation of diluted earnings per share were 2,000 shares and 17,000 shares for the three and nine months ended September 30, 2011, respectively. Such shares were not included because they were anti-dilutive. There were no anti-dilutive CESs during 2012.