Net Income per Common Share

9 Months Ended

Sep. 30, 2013

Net Income per Common Share

Net Income per Common Share

NOTE B—Net Income per Common Share

        The following tables reconcile income (numerator) and shares (denominator) used in the computations of net income per common share (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2013		2012		2013
Numerator:
Net income	$	66,262	$	47,232	$	114,025	$	106,770
Denominator:
Weighted average number of common shares outstanding—basic		27,521		26,990		27,346		26,976
Common stock equivalents—stock options		426		655		395		539
Common stock equivalents—restricted stock		7		4		10		11
Common stock equivalents—restricted stock units		87		54		83		35
Common stock equivalents—employee stock purchase plan		1		1		1		2
Weighted average number of common shares outstanding—diluted		28,042		27,704		27,835		27,563
Net income per common share—basic	$	2.41	$	1.75	$	4.17	$	3.96
Net income per common share—diluted	$	2.36	$	1.70	$	4.10	$	3.87

        The weighted average number of common shares outstanding for the three and nine months ended September 30, 2012 and 2013 were calculated using outstanding shares of the Company's common stock. Common stock equivalents included in the calculation of diluted weighted average common shares outstanding for the three and nine months ended September 30, 2012 and 2013 represent stock options to purchase shares of the Company's common stock, restricted stock awards and restricted stock units, and stock purchased under the Employee Stock Purchase Plan.

        The Company had additional potential dilutive securities outstanding representing 2.3 million and 2.2 million options for the three and nine months ended September 30, 2012, respectively, and 0.9 million and 0.9 million for the three and nine months ended September 30, 2013, respectively, that were not included in the computation of dilutive securities because they were anti-dilutive for the period. Had these shares not been anti-dilutive, all of these shares would not have been included in the net income per common share calculation as the Company uses the treasury stock method of calculating diluted shares.