EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.

The following table sets forth the computation of basic and diluted earnings per share:

In thousands, except share and per share data
	Years Ended December 31,
	2013		2012		2011
Numerator:
Numerator for basic earnings per share net income attributable to Stericycle, Inc.	$	311,372	$	267,996	$	234,751
Denominator:
Denominator for basic earnings per share-weighted average shares	85,902,550		85,401,365		85,467,421
Effect of diluted securities:
Employee stock options	1,489,438		1,617,108		1,900,291
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises	87,391,988		87,018,473		87,367,712
Earnings per share – Basic	$	3.62	$	3.14	$	2.75
Earnings per share – Diluted	$	3.56	$	3.08	$	2.69

For additional information regarding outstanding employee stock options, see Note 6 - Stock Based Compensation, in the Notes to the Consolidated Financial Statements.

In 2013, 2012 and 2011, options to purchase 846,808 shares, 1,049,707 shares and 879,266 shares, respectively, at exercise prices of $94.76-$119.19, $77.49-$94.76 and $77.00-$94.24 were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive.