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Earnings per Share
 6 Months Ended
Jun. 30, 2012
Earnings per Share [Abstract]  
Earnings per Share
5. Earnings per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the three and six months ended June 30, 2012 and 2011:

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  
         

Weighted average number of shares outstanding used to calculate basic EPS

     5,106,000       5,785,000       5,075,000       5,804,000  
         

Dilutive Securities:

                                

Stock options and restricted share units

     115,000       144,000       116,000       170,000  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Weighted average number of shares and share equivalents used to calculate diluted EPS

     5,221,000       5,929,000       5,191,000       5,974,000  
   

 

 

    

 

 

    

 

 

    

 

 

  

The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings per share includes the amount the employee must pay upon exercise, the amount of compensation cost attributed to future services and not yet recognized and the amount of tax benefits that would be credited to additional paid-in-capital assuming exercise of the stock option or vesting of the restricted share unit. The assumed amount credited to additional paid-in-capital equals the tax benefit from the assumed exercise of stock options or the assumed vesting of restricted share units after consideration of the intrinsic value upon assumed exercise less the actual stock-based compensation expense recognized in the income statement.

Stock options and restricted share units issued under equity benefit plans to purchase 160,672 and 479,807 shares of common stock were outstanding during the three and six month periods ended June 30, 2012, and stock options and restricted share units issued under equity benefit plans to purchase 449,134 and 448,810 shares of common stock were outstanding during the three and six month periods ended June 30, 2011, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive in the respective periods.