Computation of Net Earnings per Share

9 Months Ended

Sep. 30, 2022

Computation of Net Earnings per Share

Computation of Net Earnings per Share

Note 7.  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				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands, except per share amounts)
Net income available to common stockholders	$	40,283	$	27,515	$	126,087	$	62,901
Weighted average common shares outstanding used in computing basic income per share		33,011		33,537		33,116		33,643
Incremental options and RSUs		378		552		522		696
Weighted average common shares used in computing diluted net income per share		33,389		34,089		33,638		34,339
Net income per share
Basic	$	1.22	$	0.82	$	3.81	$	1.87
Diluted	$	1.21	$	0.81	$	3.75	$	1.83

Diluted weighted average common shares outstanding does not include 5,046 and 347 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended September 30, 2022 and 2021, respectively, or 6,692 and 413 common equivalent shares issuable with respect to outstanding equity awards for the nine-month periods ended September 30, 2022 and 2021, respectively, as their effect would have been anti-dilutive.