EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2015

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 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 June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Numerator:
Numerator for basic earnings per share net income attributable to Stericycle, Inc.	$	60,449	$	81,936	$	135,907	$	161,085
Denominator:
Denominator for basic earnings per share-weighted average shares	84,961,907		84,699,043		85,000,723		84,982,966
Effect of diluted securities:
Employee stock options	1,259,127		1,283,545		1,292,093		1,317,326
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises	86,221,034		85,982,588		86,292,816		86,300,292
Earnings per share – Basic	$	0.71	$	0.97	$	1.60	$	1.90
Earnings per share – Diluted	$	0.70	$	0.95	$	1.57	$	1.87

For additional information regarding outstanding employee stock options, see Note 6 - Stock Based Compensation.