Net Earnings Per Share

9 Months Ended

Sep. 30, 2014

Net Earnings Per Share

6. Net Earnings Per Share

Basic net earnings per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for each period presented. Diluted net earnings per share is computed using net income divided by the sum of Weighted Shares and common equivalent shares (“CESs”) outstanding for each period presented using the treasury stock method.

The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three and nine months ended September 30, 2014 and 2013 (in thousands, except per share data):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(in thousands, except per share data)					(in thousands, except per share data)
Net income	$	22,340	$	19,688		$	61,646		$	50,450
Earnings per share:
Basic	$	0.30	$	0.26		$	0.82		$	0.66
Effect of CESs		—		(0.01	)		(0.01	)		(0.01	)
Diluted	$	0.30	$	0.25		$	0.81		$	0.65
Weighted average number of shares:
Basic		74,687		76,452			75,255			76,880
Effect of CESs		779		1,100			849			1,224
Diluted		75,466		77,552			76,104			78,104

There were no anti-dilutive CESs during 2013 and 2014.