Note 6. Computation of Net Earnings per Share

Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted‑average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased by the number of additional common shares that would have been outstanding if the potentially dilutive common shares issuable on exercise of stock options and vesting of RSUs had been issued, calculated using the treasury stock method.

The components of net earnings per share are as follows:


	Three months ended
	March 31,
	2020		2019
	(in thousands, except per share amounts)
Net income available to common stockholders	$	11,221	$	6,062
Weighted average common shares outstanding used in computing basic income per share		32,872		32,683
Incremental options and RSUs		1,185		1,541
Weighted average common shares used in computing diluted net income per share		34,057		34,224
Net income per share
Basic	$	0.34	$	0.19
Diluted	$	0.33	$	0.18

Diluted weighted average common shares outstanding does not include options and RSUs outstanding to purchase 1,675 and 9,213 common equivalent shares for the three month periods ended March 31, 2020 and 2019, respectively, as their effect would have been anti-dilutive.