The computation of basic and diluted earnings per share (“EPS”) is as follows (in thousands, except per share amounts): | | | | Quarters Ended | | | Nine Months Ended | | | | | | September 30, | | | September 30, | | Numerator | | 2011 | | | 2010 | | | 2011 | | | 2010 | | | | Net income | | $ | 16,473 | | | $ | 10,629 | | | $ | 50,024 | | | $ | 26,242 | | | | Percentage allocated to shareholders (1) | | | 99.2% | | | | 98.9% | | | | 99.0% | | | | 99.1% | | | | Numerator for basic and diluted earnings per share | | $ | 16,341 | | | $ | 10,512 | | | $ | 49,524 | | | $ | 26,005 | | | | | | | | | | | | | | | | | | | | | Denominator | | | | | | | | | | | | | | | | | | | Denominator for basic earnings per share - | | | | | | | | | | | | | | | | | | | weighted-average shares outstanding | | | 58,598 | | | | 57,899 | | | | 58,441 | | | | 57,550 | | | | Dilutive effect of stock options | | | 389 | | | | 583 | | | | 445 | | | | 676 | | | | Dilutive effect of restricted stock units | | | — | | | | — | | | | 99 | | | | — | | | | Denominator for diluted earnings per share | | | 58,987 | | | | 58,482 | | | | 58,985 | | | | 58,226 | | | | | | | | | | | | | | | | | | | | | Per share income | | | | | | | | | | | | | | | | | | | Basic | | $ | 0.28 | | | $ | 0.18 | | | $ | 0.85 | | | $ | 0.45 | | | | Diluted | | | 0.28 | | | | 0.18 | | | | 0.84 | | | | 0.45 | | _________________________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) | Basic weighted-average shares outstanding | | | 58,598 | | | | 57,899 | | | | 58,441 | | | | 57,550 | | | | Basic weighted-average shares outstanding and | | | | | | | | | | | | | | | | | | | unvested restricted share units expected to vest | | | 59,062 | | | | 58,514 | | | | 59,047 | | | | 58,071 | | | | Percentage allocated to shareholders | | | 99.2% | | | | 98.9% | | | | 99.0% | | | | 99.1% | |
The calculation of EPS shown above excludes the income attributable to certain of the company’s unvested restricted stock units from the numerator and excludes the impact of those units from the denominator. Diluted weighted-average shares for all periods exclude the effect of the company’s convertible senior subordinated notes that were anti-dilutive.
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