EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing 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, shares to be purchased under the Company’s employee stock purchase plan and RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.

The following table sets forth the computation of basic and diluted earnings per share:

In thousands, except share and per share data
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Numerator:
Numerator for basic earnings per share Net income attributable to Stericycle, Inc.	$	80,547	$	65,477	$	233,208	$	197,927
Denominator:
Denominator for basic earnings per share weighted average shares	85,849,656		85,748,998		86,021,764		85,251,002
Effect of diluted securities:
Employee stock options	1,551,909		1,556,781		1,475,512		1,660,227
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed conversions	87,401,565		87,305,779		87,497,276		86,911,229
Earnings per share – Basic	$	0.94	$	0.76	$	2.71	$	2.32
Earnings per share – Diluted	$	0.92	$	0.75	$	2.67	$	2.28