Net Earnings Per Share ("EPS")

9 Months Ended

Sep. 30, 2021

4.	Net Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding restricted stock units (“RSUs”) and certain shares underlying the Notes. A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Net earnings	$	55,483	$	38,906	$	157,212	$	119,252
Denominator:
Weighted average shares used to compute basic EPS		34,855		35,077		35,050		35,123
Dilutive potential common shares due to dilutive RSUs, net of tax effect		381		271		407		295
Dilutive potential common shares due to the Notes		1,509		—		1,403		—
Weighted average shares used to compute diluted EPS		36,745		35,348		36,860		35,418
Net earnings per share:
Basic	$	1.59	$	1.11	$	4.49	$	3.40
Diluted	$	1.51	$	1.10	$	4.27	$	3.37

For the three and nine months ended September 30, 2021, 900 and 400, respectively, of our RSUs were excluded from the diluted EPS calculations. Certain potential outstanding shares from the warrants relating to the Call Spread Transactions were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. For the three and nine months ended September 30, 2020, 3,000 and 163,000, respectively, of our RSUs and certain potential outstanding shares from the Notes and warrants were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive.