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Net Income Per Common Share
 9 Months Ended
Sep. 30, 2012
Net Income Per Common Share

3. Net Income Per Common Share

Basic net income per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax.

The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share.

 

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

Denominator:

            

Basic common shares outstanding

      44,365         44,302         44,395         44,845   

Effect of dilutive stock options and restricted stock

      974         485         825         448   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted common shares outstanding

      45,339         44,787         45,220         45,293   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted weighted average shares outstanding exclude the incremental effect of shares that would be issued upon the assumed exercise of stock options. For the nine months ended September 30, 2012 and 2011, approximately 2,009 and 2,878, respectively, of the University’s stock options outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These options could be dilutive in the future.