Computation of Net Earnings per Share

9 Months Ended

Sep. 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				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in thousands, except per share amounts)
Net income available to common stockholders	$	65,931	$	40,283	$	175,207	$	126,087
Weighted average shares of common stock outstanding used in computing basic income per share		32,807		33,011		32,775		33,116
Incremental options and RSUs		352		378		433		522
Weighted average shares of common stock used in computing diluted net income per share		33,159		33,389		33,208		33,638
Net income per share
Basic	$	2.01	$	1.22	$	5.35	$	3.81
Diluted	$	1.99	$	1.21	$	5.28	$	3.75

Diluted weighted average shares of common stock outstanding does not include 734 and 5,046 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended September 30, 2023 and 2022, respectively, or 2,598 and 6,692 common equivalent shares issuable with respect to outstanding equity awards for the nine-month periods ended September 30, 2023 and 2022, respectively, as their effect would have been anti-dilutive.