Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of shares issuable upon the assumed conversion of the Company’s Senior Convertible Notes (prior to the conversion of such notes in April 2013) and incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:

	Three Months Ended
	March 31, 2014		March 31, 2013
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	53,115	$	2,689
Shares used in computation:
Weighted-average common shares outstanding	59,817		55,972
Basic earnings per share	$	0.89	$	0.05
Diluted earnings per share:
Net income	$	53,115	$	2,689
Senior Convertible Notes interest expense, net of tax	—		49
Numerator for diluted earnings per share	$	53,115	$	2,738
Shares used in computation:
Weighted-average common shares outstanding	59,817		55,972
Senior Convertible Notes shares	—		2,331
Employee stock options	1,731		1,843
Weighted-average number of shares	61,548		60,146
Diluted earnings per share	$	0.86	$	0.05

Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation:

	Three Months Ended
	March 31, 2014	March 31, 2013
	(in thousands)
Employee stock options	41	450