NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2015

The Company computes basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted-average number of common and common equivalent shares outstanding during the period.

Common equivalent shares related to stock options, restricted stock units and performance share units are calculated using the treasury stock method. Performance share units are included in the weighted-average common equivalent shares based on the number of shares that would be issued if the end of the reporting period were the end of the performance period, if the result would be dilutive.

The Company's convertible notes have net share settlement features requiring the Company upon conversion to settle the principal amount of the debt for cash and the conversion premium for cash or shares of the Company's common stock, at the Company's option. The convertible notes are included in the calculation of diluted net income per share if their inclusion is dilutive under the treasury stock method.

A reconciliation of the weighted-average number of shares outstanding used in calculating diluted earnings per share is as follows (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2015	2014	2015	2014
Weighted-average number of basic common shares outstanding	51,589	52,397	51,748	52,275
Weighted-average dilutive stock options, restricted stock units and performance share units	229	188	273	271
Assumed conversion of Convertible Senior Notes	220	370	232	458
Weighted-average number of diluted common and common equivalent shares outstanding	52,038	52,955	52,253	53,004
Anti-dilutive potential common shares	2,775	2,161	2,769	2,077

Anti-dilutive potential common shares for both the three and six months ended June 30, 2015 include approximately 2.1 million shares that could be issued under the Company's outstanding convertible notes. Under the treasury stock method, the convertible notes will generally have a dilutive impact on net income per share if the Company's average stock price for the period exceeds the conversion price for the convertible notes.