Computation of Net Earnings per Share

6 Months Ended

Jun. 30, 2023

Computation of Net Earnings per Share

Computation of Net Earnings per Share

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 shares of common stock 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 shares of common stock that would have been outstanding if the potentially dilutive shares of common stock 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				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands, except per share amounts)
Net income available to common stockholders	$	61,579	$	44,189	$	109,276	$	85,804
Weighted average shares of common stock outstanding used in computing basic income per share		32,775		33,096		32,759		33,170
Incremental options and RSUs		414		466		478		600
Weighted average shares of common stock used in computing diluted net income per share		33,189		33,562		33,237		33,770
Net income per share
Basic	$	1.88	$	1.34	$	3.34	$	2.59
Diluted	$	1.86	$	1.32	$	3.29	$	2.54

Diluted weighted average shares of common stock outstanding does not include 770 and 15,796 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended June 30, 2023 and 2022, respectively, or 387 and 8,255 common equivalent shares issuable with respect to outstanding equity awards for the six-month periods ended June 30, 2023 and 2022, respectively, as their effect would have been anti-dilutive.