Table:
|  |  | Years Ended December 31, |  |
| --- | --- | --- | --- |
|  | 2019 | 2018 | 2017 |
| Numerator: |  |  |  |
| Netearnings | $159,407 | $163,677 | $90,683 |
| Denominator: |  |  |  |
| Weighted-average shares used to compute basic EPS | 35,538 | 35,586 | 35,741 |
| Dilutive potential common shares due to dilutive: |  |  |  |
| RSUs, net of tax effect | 421 | 423 | 466 |
| Weighted-average shares used to compute diluted EPS | 35,959 | 36,009 | 36,207 |
| Net earnings per share: |  |  |  |
| Basic | $4.49 | $4.60 | $2.54 |
| Diluted | $4.43 | $4.55 | $2.50 |
Paragraphs:
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 year. 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 RSUs.
A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share data):
In 2019, 2018 and 2017, approximately 42,000, 17,000 and 40,000, respectively, of our RSUs were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive. These share-based awards could be dilutive in the future. In the year ended December 31, 2019, certain potential outstanding shares from convertible senior notes and warrants were not included in the diluted EPS calculations because their inclusion would have been anti-dilutive.
Question:
How is Diluted EPS computed?
Answer: 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