Net Earnings Per Share

9 Months Ended

Sep. 30, 2023

Basic earnings per share ("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 and the warrants relating to the Call Spread Transactions, as applicable. 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,
	2023		2022		2023		2022
Numerator:
Net earnings	$	60,247	$	57,316	$	190,701	$	203,131
Denominator:
Weighted average shares used to compute basic EPS	32,574		34,952		33,127		35,003
Dilutive potential common shares due to dilutive RSUs, net of tax effect	278		201		275		243
Dilutive potential common shares due to the Notes	2,774		1,187		2,533		1,468
Dilutive potential common shares due to the Warrants	1,577		—		1,214		—
Weighted average shares used to compute diluted EPS	37,203		36,340		37,149		36,714
Net earnings per share:
Basic	$	1.85	$	1.64	$	5.76	$	5.80
Diluted	$	1.62	$	1.58	$	5.13	$	5.53

For the three and nine months ended September 30, 2023, 65,000 and 72,000, respectively, of our RSUs were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive. For the three and nine months ended September 30, 2022, 67,000 and 39,000, respectively, of our RSUs were excluded from the diluted EPS calculations and certain potential outstanding shares from the warrants related to the Call Spread Transactions were excluded from the diluted EPS calculations because their inclusion would have been anti-dilutive.