For the Years Ended December 31, 2011, 2010 and 2009
The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each year. The computation of diluted earnings per share includes the common stock equivalency of dilutive options granted to employees under the Stock Incentive Plan.
Excluded from the diluted earnings per share calculation for the years ended December 31, 2011, 2010 and 2009, respectively, are 265,026, 471,688 and 610,436 shares of equity awards granted to employees that are anti-dilutive based on the average stock price.
| For the year ended December 31, | |||
| 2011 | 2010 | 2009 | |
| In thousands, except per share amounts | |||
| Net earnings | $ 51,142 | $ 35,611 | $ 24,995 |
| Basic: | |||
| Weighted average number of shares outstanding | 26,246 | 25,928 | 25,648 |
| Net earnings per share | $ 1.95 | $ 1.37 | $ 0.97 |
| Diluted: | |||
| Weighted average number of shares outstanding | 26,246 | 25,928 | 25,648 |
| Weighted average shares issuable on exercise of dilutive stock options | 223 | 176 | 131 |
| Weighted average shares issuable on exercise of convertible notes | 31 | — | — |
| Total | 26,500 | 26,104 | 25,779 |
| Diluted net earnings per share | $ 1.93 | $ 1.36 | $ 0.97 |
In November 2010, the Company issued Convertible Notes due on November 15, 2017, in the aggregate principal amount of $115.0 million. Shares issuable under the Convertible Notes were excluded from the diluted earnings per share calculation for the years ended December 31, 2011 and 2010 because the conversion price was greater than the average market price of our stock during the period. Excluded from the diluted earnings per share calculation for the year ended December 31, 2011 and 2010 are 3,386,739 shares issuable under the warrants sold in connection with the Company's convertible note offering as they would be anti-dilutive.