Note 3. Earnings per share

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock.

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:



	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
Numerator:
Net earnings	$	38,489	$	38,105	$	56,749	$	84,653
Denominator:
Basic shares outstanding		61,401		61,310		61,323		61,436
Dilutive effect of stock options and restricted stock		2,349		2,189		2,407		2,157
Diluted shares outstanding		63,750		63,499		63,730		63,593
Income per common share:
Basic earnings per share	$	0.63	$	0.62	$	0.93	$	1.38
Diluted earnings per share	$	0.60	$	0.60	$	0.89	$	1.33

The following stock option grants were outstanding during the three and six-months ended March 31, 2018 and 2017, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive.



	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
Options		764		67		759		2
Weighted-average option price	$	78.73	$	62.98	$	78.74	$	70.39

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:



	Three-Months Ended				Six-Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
Weighted-average treasury stock shares held for deferred compensation obligations		200		185		195		175