Earnings Per Share

9 Months Ended

Sep. 30, 2020

NOTE 10—EARNINGS PER SHARE

Earnings per share ("EPS") is presented on both a basic and diluted basis. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

A reconciliation of common shares used in the denominator for computing basic and diluted EPS is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2020		2019		2020		2019
Weighted average shares of common stock outstanding, used in computing basic earnings per share	66,179		67,593		66,427		67,935
Effect of dilutive stock options and restricted stock units	358		587		380		685
Weighted average shares of common stock outstanding, used in computing diluted earnings per share	66,537		68,180		66,807		68,620
Earnings per share of common stock:
Basic	$	0.95	$	1.76	$	0.18	$	3.19
Diluted	$	0.94	$	1.75	$	0.18	$	3.15

Stock options, service-based restricted stock units, and performance-based restricted stock units representing 1,156,073 and 1,282,086 shares of common stock for the three and nine months ended September 30, 2020, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

Stock options, service-based restricted stock units, and performance-based restricted stock units representing 440,993 and 378,617 shares of common stock for the three and nine months ended September 30, 2019, respectively, were outstanding but were excluded from the computation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.