EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Basic 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 unvested 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,
	2024		2023		2024		2023
Numerator for basic and diluted earnings per share:
Net income	$	136,346	$	97,204	$	351,234	$	319,529
Numerator for basic and diluted earnings per share	$	136,346	$	97,204	$	351,234	$	319,529

Denominator:
Weighted average common shares for basic earnings per share	56,910		57,853		57,445		57,850
Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP	515		1,095		721		1,293
Weighted average common shares for diluted earnings per share	57,425		58,948		58,166		59,143

Net income per share:
Basic	$	2.40	$	1.68	$	6.11	$	5.52
Diluted	$	2.37	$	1.65	$	6.04	$	5.40

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 1,426 thousand and 1,056 thousand during the three and nine months ended September 30, 2024, 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 452 thousand and 410 thousand during the three and nine months ended September 30, 2023, respectively.