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Earnings per Share
 15 Months Ended
Dec. 31, 2011
Earnings per Share [Abstract]  
Earnings per Share

Note C: Earnings per Share

We compute basic earnings per share on the basis of the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share 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 stock options and restricted stock awards.

Potential common shares are required to be excluded from the computation of diluted earnings per share if the assumed proceeds upon exercise or vest, as defined by FASB ASC 718-10-25, are greater than the cost to re-acquire the same number of shares at the average market price, and therefore the effect would be anti-dilutive.

Components of basic and diluted earnings per share and excluded anti-dilutive potential common shares are as follows:

 

                 
    Three Months Ended  
    December 31,  
    2011     2010  
    (In thousands, except per share amounts)  

Net income (A)

   $ 39,352     $ 27,429  

Weighted average outstanding shares of common stock (B)

     50,355       49,698  

Dilutive effect of stock options and restricted stock

     338       421  
   

 

 

    

 

 

  

Weighted average common stock and common stock equivalents (C)

     50,693       50,119  
   

 

 

    

 

 

  

Basic earnings per share (A/B)

   $ 0.78     $ 0.55  
   

 

 

    

 

 

  

Diluted earnings per share (A/C)

   $ 0.78     $ 0.55  
   

 

 

    

 

 

  

Potential common shares excluded from the calculation of diluted earnings per share

     10       —