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Earnings per Share
9 Months Ended
Sep. 30, 2011
Earnings per Share [Abstract] 
Earnings per Share
5. Earnings per Share

The following weighted average shares and share equivalents are used to calculate basic and diluted earnings per share for the three and nine months ended September 30, 2011 and 2010:

                                 
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2011     2010     2011     2010  
         

Weighted average number of shares outstanding used to calculate basic EPS

     5,301,000       5,748,000       5,634,000       5,978,000  
         

Dilutive Securities:

                                

Stock options and restricted share units

     136,000       263,000       158,000       293,000  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Weighted average number of shares and share equivalents used to calculate diluted EPS

     5,437,000       6,011,000       5,792,000       6,271,000  
   

 

 

    

 

 

    

 

 

    

 

 

  

The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings per share includes the amount the employee must pay upon exercise, the amount of compensation cost attributed to future services and not yet recognized, and the amount of tax benefits that would be credited to additional paid-in capital assuming exercise of the option or the vesting of the restricted share unit. The assumed amount credited to additional paid-in capital equals the tax benefit from assumed exercise of stock options or the assumed vesting of restricted share units after consideration of the intrinsic value upon assumed exercise less the actual stock-based compensation expense to be recognized in the income statement from 2006 and future periods.

 

Stock options and restricted share units issued under equity benefit plans to purchase or acquire 450,934 and 450,075 shares of common stock were outstanding during the three and nine month periods ended September 30, 2011, and stock options issued under equity benefit plans to purchase 441,252 and 440,202 shares of common stock were outstanding during the three and nine month periods ended September 30, 2010, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive in the respective periods.