Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

Earnings Per Share

7. 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):

	September 30,		September 30,
	Three months ended		Nine months ended
	2013	2012	2013	2012
Weighted average shares outstanding — basic	87,830	86,405	87,551	86,010
Dilutive effect of stock options	1,146	2,036	1,268	2,107
Dilutive effect of restricted stock awards and units	191	303	179	282
Weighted average shares outstanding - diluted	89,167	88,744	88,998	88,399

For the three months ended September 30, 2013 and 2012, 1,249,399 and 145,510 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 September 30, 2013, restricted stock units representing 178,421 shares of common stock, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

For the nine months ended September 30, 2013 and 2012, 1,375,604 and 204,376 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the nine months ended September 30, 2013 and 2012, restricted stock units representing 106,194 and 50,722 shares of common stock, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.