NOTE 4. EARNINGS PER SHARE

The following table reconciles the number of shares used in calculating basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)	2018		2017		2018		2017
Net income	$	60,336	$	33,700	$	121,081	$	74,865

Basic weighted-average shares outstanding		62,985,517		40,829,399		58,765,381		40,814,135
Incremental shares due to:
Performance shares		269,998		378,149		262,648		331,082
Restricted stock units		37,535		42,909		32,736		37,578
Stock portion of earnings and profits distribution		1,428,607		—		481,435		—
Diluted weighted-average shares outstanding		64,721,657		41,250,457		59,542,200		41,182,795

Basic net income per share	$	0.96	$	0.83	$	2.06	$	1.83
Diluted net income per share	$	0.93	$	0.82	$	2.03	$	1.82

In February 2018 we issued 22.0 million shares in connection with the Deltic merger. Further, on August 30, 2018, the board of directors approved a special distribution of $222.0 million to be paid on November 15, 2018 in connection with the acquisition in order to maintain the company’s qualification as a REIT. Using a volume weighted average price of our common stock for final three trading days in September, we estimated 4.2 million shares would be required to settle the 80% stock portion of the $222.0 million special distribution accrual at September 30, 2018. The weighted average shares for the dilutive effect on earnings per share from the stock portion of the special distribution was based on the August 30, 2018 declaration date. See Note 3: Merger with Deltic for further discussion on the merger.

For the three and nine months ended September 30, 2018, there were 15,966 and 38,320 stock-based awards that were excluded from the calculation of diluted earnings per share because they were anti-dilutive. Anti-dilutive stock-based awards could be dilutive in future periods. For the three and nine months ended September 30, 2017, there were 0 and 167 stock-based awards that were excluded from the calculation of diluted earnings per share because they were anti-dilutive.