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Earnings Per Share
 12 Months Ended
Dec. 31, 2012
Earnings Per Share

9. Earnings Per Share

Basic earnings 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.

 

     Year Ended December 31,  
     2012      2011      2010  

Denominator:

         

Basic common shares outstanding

      44,332         44,631         45,722   

Effect of dilutive stock options and restricted stock

      919         474         674   
  

 

 

     

 

 

     

 

 

  

Diluted common shares outstanding

      45,251         45,105         46,396   
  

 

 

     

 

 

     

 

 

  

Diluted weighted average shares outstanding exclude the incremental effect of shares that would be issued upon the assumed exercise of stock options. For the year ended December 31, 2012, 2011 and 2010, approximately 1,599, 2,158 and 602, 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.