BASIC AND DILUTED NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2011

BASIC AND DILUTED NET INCOME PER SHARE

BASIC AND DILUTED NET INCOME PER SHARE

NOTE 10. BASIC AND DILUTED NET INCOME PER SHARE

        Basic net income per share is calculated by dividing the net income by the weighted-average number of common shares outstanding for the period, without consideration of potential common shares. Diluted net income per share is computed by dividing the net income by the weighted-average number of common shares outstanding for the period and dilutive potential common shares for the period determined using the treasury-stock method. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net income per share when their effect is dilutive.

        The following table is a reconciliation of the denominator used in the calculation of basic and diluted earnings per share (in thousands):

	Three months ended, June 30,				Six months ended June 30,
	2011		2010		2011		2010
Weighted-average common shares outstanding used in calculation of basic earnings per share		60,399		60,293		60,382		60,251
Dilutive stock options		671		477		662		501
Weighted-average common shares outstanding used in calculation of diluted earnings per share		61,070		60,770		61,044		60,752
Weighted-average outstanding stock options not included in diluted net income per share calculation as they had an antidilutive effect		9,068		8,235		8,960		7,583