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Earnings Per Share
9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of shares issuable upon the assumed conversion of the Company’s Senior Convertible Notes (prior to the conversion of such notes) and incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2013
 
September 30,
2012
 
September 30,
2013
 
September 30,
2012
 
(in thousands, except per share data)
Basic earnings per share:
 
 
 
 
 
 
 
Net income
$
31,822

 
$
7,675

 
$
63,982

 
$
9,255

Shares used in computation:
 
 
 
 
 
 
 
Weighted-average common shares outstanding
59,108

 
55,541

 
57,769

 
55,508

Basic earnings per share
$
0.54

 
$
0.14

 
$
1.11

 
$
0.17

 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net income
$
31,822

 
$
7,675

 
$
63,982

 
$
9,255

Senior Convertible Notes interest expense, net of tax

 
49

 
49

 
146

Numerator for diluted earnings per share
$
31,822

 
$
7,724

 
$
64,031

 
$
9,401

Shares used in computation:
 
 
 
 
 
 
 
Weighted-average common shares outstanding
59,108

 
55,541

 
57,769

 
55,508

Senior Convertible Notes shares

 
2,331

 
956

 
2,331

Employee stock options
1,882

 
857

 
1,853

 
990

Weighted-average number of shares
60,990

 
58,729

 
60,578

 
58,829

Diluted earnings per share
$
0.52

 
$
0.13

 
$
1.06

 
$
0.16



Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation:

 
Three Months Ended
 
Nine Months Ended
 
September 30,
2013
 
September 30,
2012
 
September 30,
2013
 
September 30,
2012
 
(in thousands)
Employee stock options
12

 
1,782

 
260

 
1,199