Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

Earnings Per Share

6.     Earnings Per Share

Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted income per share is calculated by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding during the period.  Our common share equivalents consist of stock options and restricted stock awards and units.

The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands):

	June 30,		June 30,
	Three months ended		Six months ended
	2013	2012	2013	2012
Weighted average shares outstanding — basic	87,674	86,196	87,408	86,030
Dilutive effect of stock options	1,200	1,907	1,336	2,131
Dilutive effect of restricted stock awards and units	149	248	175	268
Weighted average shares outstanding - diluted	89,023	88,351	88,919	88,429

For the three months ended June 30, 2013 and 2012, 1,413,369 and 897,368 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.  For the three months ended June 30, 2013 and 2012, restricted stock units representing 189,278 and 50,721 shares of common stock, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

For the six months ended June 30, 2013 and 2012, 1,375,346 and 485,837 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the six months ended June 30, 2013 and 2012, restricted stock units representing 102,847 and 50,818 shares of common stock, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.