Note 4: Earnings per Share

Basic earnings per share is calculated by dividing net earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock, and the dilutive effect of the convertible senior notes.

The components of basic and diluted earnings per share are as follows (in thousands, except earnings per share):


	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Income from continuing operations	$	11,012	$	18,988	$	30,460	$	37,096
Loss from discontinued operations, net of tax		—		(2,392)		—		(9,094)

Net income available for common stockholders	$	11,012	$	16,596	$	30,460	$	28,002

Weighted average common shares outstanding – basic		23,966		24,919		23,707		24,850
Dilutive effect of stock-based awards		849		906		945		972
Dilutive effect of convertible senior notes		40		—		—		—

Weighted average common shares outstanding – diluted		24,855		25,825		24,652		25,822

Basic earnings (loss) per share from:
Continuing operations	$	0.46	$	0.76	$	1.28	$	1.49
Discontinued operations	$	—	$	(0.09)	$	—	$	(0.36)

Net basic earnings per share	$	0.46	$	0.67	$	1.28	$	1.13

Diluted earnings (loss) per share from:
Continuing operations	$	0.44	$	0.74	$	1.24	$	1.44
Discontinued operations	$	—	$	(0.10)	$	—	$	(0.36)

Net diluted earnings per share	$	0.44	$	0.64	$	1.24	$	1.08

No anti-dilutive employee stock options were outstanding during the three and six months ended June 30, 2013. Employee stock options to purchase approximately 391,900 and 300,400 shares of common stock during the three and six months ended June 30, 2012, respectively, were outstanding but not included in the computation of diluted earnings per share because the effect on diluted earnings per share would be anti-dilutive.

The dilutive effect of the Company’s convertible senior notes was approximately 40,000 shares for the three months ended June 30, 2013. The effect of the convertible senior notes was anti-dilutive for the six months ended June 30, 2013. See Note 11 “Debt” for additional details.

Warrants to purchase approximately 3.6 million shares of the Company’s common stock were outstanding at June 30, 2013 but were not included in the computation of diluted earnings per share because the warrants’ exercise price of $44.1875 was greater than the average share price of the Company’s common stock during the three and six months ended June 30, 2013; therefore, the effect of the warrants was anti-dilutive for those periods.