Earnings Per Share

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	59,295	$	31,822	$	183,428	$	63,982
Shares used in computation:
Weighted-average common shares outstanding	60,171		59,108		59,996		57,769
Basic earnings per share	$	0.99	$	0.54	$	3.06	$	1.11
Diluted earnings per share:
Net income	$	59,295	$	31,822	$	183,428	$	63,982
Senior Convertible Notes interest expense, net of tax	—		—		—		49
Numerator for diluted earnings per share	$	59,295	$	31,822	$	183,428	$	64,031
Shares used in computation:
Weighted-average common shares outstanding	60,171		59,108		59,996		57,769
Senior Convertible Notes shares	—		—		—		956
Employee stock options	1,649		1,882		1,673		1,853
Weighted-average number of shares	61,820		60,990		61,669		60,578
Diluted earnings per share	$	0.96	$	0.52	$	2.97	$	1.06

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		Nine Months Ended
	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
	(in thousands)
Employee stock options	53	12	64	260