Earnings per share

3 Months Ended

Mar. 31, 2014

Earnings per share. Basic earnings per share are computed based upon the weighted average number of common shares outstanding. Diluted earnings per share are computed based upon the weighted average number of common shares outstanding and dilutive common share equivalents (consisting of incentive stock options, non-qualified stock options and restricted stock awards and units and employee stock purchase plan shares) outstanding during the periods using the treasury stock method.

The following is a reconciliation of the shares used to compute basic and diluted earnings per share (in thousands):



	Three Months Ended
	March 31,
	2014	2013
Weighted average number of common shares outstanding used to compute basic earnings per share	54,104	53,046
Dilutive effect of stock-based awards	871	990
Number of shares used to compute diluted earnings per share	54,975	54,036

There were 10,000 and 77,000 weighted average share equivalents outstanding during the three months ended March 31, 2014 and 2013, respectively, that were excluded from the computation of diluted earnings per share because the exercise price for these options was greater than the average market price of the Company’s shares of common stock during the respective periods that became anti-dilutive when applying the treasury stock method.

- Definition

The entire disclosure for earnings per share.

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