EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

EARNINGS PER SHAREBasic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, any nonvested shares of restricted stock that have been issued by the Company and are contingently returnable to the Company are excluded from the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested equity-settled RSUs and the stock to be issued under the Company’s ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share of common stock as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator for basic and diluted earnings per share:
Net income	$	156,054	$	115,656	$	264,377	$	339,373
Numerator for basic and diluted earnings per share	$	156,054	$	115,656	$	264,377	$	339,373

Denominator:
Weighted average common shares for basic earnings per share	57,420		56,649		57,194		56,429
Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP	1,937		2,554		1,914		2,570
Weighted average common shares for diluted earnings per share	59,357		59,203		59,108		58,999

Net income per share:
Basic	$	2.72	$	2.04	$	4.62	$	6.01
Diluted	$	2.63	$	1.95	$	4.47	$	5.75

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 158 thousand and 252 thousand during the three and nine months ended September 30, 2022, respectively.

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 8 thousand and 35 thousand during the three and nine months ended September 30, 2021.