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Earnings per Share
 9 Months Ended
Sep. 30, 2012
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 nine months ended September 30, 2012 and 2011:

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
             2012                      2011                      2012                      2011          

Weighted average number of shares outstanding used to calculate basic EPS

      4,999,000         5,301,000         5,049,000         5,634,000   

Dilutive Securities:

            

Stock options and restricted share units

      133,000         136,000         118,000         158,000   
  

 

 

     

 

 

     

 

 

     

 

 

  

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

      5,132,000         5,437,000         5,167,000         5,792,000   
  

 

 

     

 

 

     

 

 

     

 

 

  

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 153,306 and 171,508 shares of common stock were outstanding during the three and nine month periods ended September 30, 2012, and stock options and restricted share units issued under equity benefit plans to purchase 450,934 and 450,075 shares of common stock were outstanding during the three and nine month periods ended September 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.