Annual report pursuant to Section 13 and 15(d)

Earnings per Share

v2.4.0.6
Earnings per Share
 12 Months Ended
Dec. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE
Earnings per share (“EPS”), is presented on both a basic and diluted basis. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted stock units determined using the treasury stock method.
A reconciliation of the common shares used in the denominator for computing basic and diluted EPS is as follows (in thousands, except per share amounts):
 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Weighted average common shares outstanding, used in computing basic earnings per share
 
33,840

 
33,808

 
33,725

Effect of dilutive stock options and restricted stock units
 
292

 
396

 
367

Weighted-average common shares outstanding, used in computing diluted earnings per share
 
34,132

 
34,204

 
34,092

Earnings per share of common stock:
 
 
 
 
 
 
Basic
 
$
2.95

 
$
3.06

 
$
2.28

Diluted
 
2.93

 
3.03

 
2.26


Stock options and service-based restricted stock units representing 887,186, 452,907 and 480,707 shares of common stock for the years ended December 31, 2012, 2011 and 2010, respectively, were outstanding but were excluded in the computation of diluted EPS because their effect would be anti-dilutive as a result of applying the treasury stock method. In addition, performance-based restricted stock units representing 36,506, 34,448 and 43,323 shares for the years ended December 31, 2012, 2011 and 2010, respectively, were outstanding but were excluded from the computation of diluted EPS because these shares were subject to performance conditions that had not been met.