Net Earnings Per Share (EPS)

9 Months Ended

Sep. 30, 2011

2. Net Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock units. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Numerator:
Net earnings	$	17,166	$	14,432	$	65,581	$	50,511


Denominator:
Weighted average shares used to compute basic EPS		44,886		46,268		46,001		46,193
Dilutive potential common shares due to dilutive options and restricted stock units, net of tax effect		531		597		549		556

Weighted average shares used to compute diluted EPS		45,417		46,865		46,550		46,749


Net earnings per share:
Basic	$	0.38	$	0.31	$	1.43	$	1.09

Diluted	$	0.38	$	0.31	$	1.41	$	1.08

For the three months ended September 30, 2011 and 2010, 200,000 and 258,000, respectively, of weighted average outstanding stock options were not included in the diluted EPS calculations because the exercise prices of these options were greater than the average market price of our common stock during the respective periods. For the nine months ended September 30, 2011 and 2010, the excluded weighted average outstanding stock options were 210,000 and 383,000, respectively.