NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2016

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,
	2016	2015	2016	2015
Weighted-average number of basic common shares outstanding	49,604	51,589	49,617	51,748
Weighted-average dilutive stock options, restricted stock units and performance share units	167	229	230	273
Assumed conversion of Convertible Senior Notes	288	220	258	232
Weighted-average number of diluted common and common equivalent shares outstanding	50,059	52,038	50,105	52,253
Anti-dilutive potential common shares	2,591	2,775	2,566	2,769

Anti-dilutive potential common shares for both the three and six months ended June 30, 2016 include approximately 2.0 million shares that could be issued under the Company's outstanding convertible notes. Under the treasury stock method, the convertible notes will generally have an anti-dilutive impact on net income per share if the conversion prices for the convertible notes exceed the Company's average stock price.