Common and Common Equivalent Shares

9 Months Ended

Sep. 30, 2012

Common and Common Equivalent Shares

7. Common and Common Equivalent Shares:

Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common and potential common shares outstanding during the applicable period. Potential common shares consist of outstanding options and non-vested restricted and deferred stock calculated using the treasury stock method. Under the treasury stock method, the Company includes the assumed excess tax benefits related to the potential exercise or vesting of its stock-based awards using the difference between the average market price for the applicable period less the option price, if any, and the fair value of the stock-based award on the date of grant multiplied by the applicable tax rate.

The calculation of shares used in the basic and diluted net income per share calculation for the three and nine months ended September 30, 2012 and 2011 is as follows (in thousands):

	Three Months  Ended September 30,				Nine Months  Ended September 30,
	2012		2011		2012		2011
Weighted average number of common shares outstanding		48,938		47,990		48,569		47,564
Weighted average number of dilutive common share equivalents		871		945		1,001		1,119
Weighted average number of common and common equivalent shares outstanding		49,809		48,935		49,570		48,683
Antidilutive securities not included in the dilutive earnings per share calculation		38		42		35		47