EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2016

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock and unvested equity-settled RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share of common stock as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Numerator for basic and diluted earnings per share:
Net income	$	26,174	$	22,873	$	74,503	$	56,818
Numerator for basic and diluted earnings per share	$	26,174	$	22,873	$	74,503	$	56,818

Denominator for basic and diluted earnings per share:
Weighted average basic common shares outstanding	51,131		49,043		50,172		48,506
Effect of dilutive securities:
Stock options, RSUs and restricted stock awards	2,733		3,301		2,987		3,249
Denominator for diluted earnings per share	53,864		52,344		53,159		51,755

Net income per share:
Basic	$	0.51	$	0.47	$	1.48	$	1.17
Diluted	$	0.49	$	0.44	$	1.40	$	1.10

During the three and nine months ended September 30, 2016, a total of 2,357 and 2,324 shares underlying equity-based awards, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effect was anti-dilutive. During the three and nine months ended September 30, 2015, a total of 2,143 and 1,456 shares underlying equity-based awards, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effect was anti-dilutive.