Computation of Earnings Per Share

3 Months Ended

Mar. 31, 2022

Computation of Earnings Per ShareBasic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted EPS is computed based on the sum of the weighted-average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable from stock options and unvested restricted stock units (“RSUs”). Potentially dilutive common shares from outstanding stock options and unvested RSUs are determined using the average share price for each period under the treasury stock method.

The following table presents the calculation of the weighted-average shares used in computing basic and diluted EPS (in thousands):


	Three Months Ended March 31,
		2022	2021




Basic weighted-average common shares outstanding		41,875	42,510
Dilutive potential shares issuable from stock options and unvested RSUs		574	1,023
Diluted weighted-average common shares outstanding		42,449	43,533
Potentially dilutive shares excluded from calculation due to anti-dilutive effect		352	96

Potentially dilutive shares excluded from the calculation above represent stock options when the combined exercise price and unrecognized stock-based compensation are greater than the average market price for the Company’s common stock because their effect is anti-dilutive.