Earnings Per Share

9 Months Ended

Sep. 30, 2015

9. Earnings Per Share

Basic earnings per share is computed on the basis of weighted average outstanding common shares. Diluted earnings per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities.

The following table reconciles the average share amounts used to compute both basic and diluted earnings per share (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Weighted average shares outstanding:
Basic weighted average shares outstanding		117,922		114,484		117,035		114,603
Add: Dilutive effect of stock options		1,382		1,944		1,463		2,079

Diluted weighted average shares outstanding		119,304		116,428		118,498		116,682

The diluted earnings per share computation excludes 3.6 million and 4.0 million options to purchase shares and contingently issuable shares during the three and nine months ended September 30, 2015, respectively, as their effect would be anti-dilutive. The diluted earnings per share computation excludes 3.1 million and 3.2 million options to purchase shares, restricted share awards, and contingently issuable shares during the three and nine months ended September 30, 2014, as their effect would be anti-dilutive.

Common stock outstanding as of September 30, 2015 and December 31, 2014 was 118,258,853 and 115,637,804, respectively.