Net Income Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include outstanding stock options and unvested restricted stock awards, which are reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the estimated tax benefit that would be recorded in additional paid-in capital upon exercise are assumed to be used to repurchase shares.

Net income per share for the years ended December 31, 2013, 2012 and 2011 are as follows (in thousands, except per share data):

	Year Ended
	December 31, 2013		December 31, 2012		December 31, 2011
Net income	$	55,217	$	86,539	$	91,368
Weighted average shares outstanding:
Basic	38,379		38,057		37,121
Dilutive potential common shares	569		690		811
Total diluted	38,948		38,747		37,932
Basic net income per share	$	1.44	$	2.27	$	2.46
Diluted net income per share	$	1.42	$	2.23	$	2.41

Common stock equivalents excluded from net income per diluted share because their effect would have been anti-dilutive totaled 2.8 million, 2.6 million and 2.0 million shares for the years ended December 31, 2013, 2012 and 2011, respectively.