EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2014

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 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
	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Numerator:
Numerator for basic earnings per share net income attributable to Stericycle, Inc.	$	82,845	$	80,547	$	243,930	$	233,208
Denominator:
Denominator for basic earnings per share-weighted average shares	84,858,360		85,849,656		84,940,975		86,021,764
Effect of diluted securities:
Employee stock options	1,258,095		1,551,909		1,296,227		1,475,512
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises	86,116,455		87,401,565		86,237,202		87,497,276
Earnings per share – Basic	$	0.98	$	0.94	$	2.87	$	2.71
Earnings per share – Diluted	$	0.96	$	0.92	$	2.83	$	2.67