NOTE 3. EARNINGS PER SHARE

The following table reconciles the number of shares used in calculating the basic and diluted earnings per share for the years ended December 31:

(Dollars in thousands, except per share amounts)	2017		2016		2015
Net income	$	86,453	$	10,938	$	31,714

Basic weighted-average shares outstanding		40,824,420		40,797,806		40,842,126
Incremental shares due to:
Performance shares		362,509		200,164		122,334
Restricted stock units		40,459		35,470		23,359
Diluted weighted-average shares outstanding		41,227,388		41,033,440		40,987,819

Basic net income per share	$	2.12	$	0.27	$	0.78
Diluted net income per share	$	2.10	$	0.27	$	0.77

For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award.

At December 31, 2017 and 2016, there were 250 and 503 stock-based awards, respectively, which were excluded from the calculation of earnings per share because they were anti-dilutive. At December 31, 2015, there were no anti-dilutive stock-based awards.

On April 26, 2016, we announced that our board of directors had authorized management to repurchase up to $60 million of common stock over a period of 24 months (the “Repurchase Plan”). We repurchased 169,625 shares of common stock during the second quarter of 2016 at an average price of $35.08 per share. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit. No shares were repurchased during 2017 and $54 million remains available on the authorization.