EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, any nonvested shares of restricted stock that have been issued by the Company and are contingently returnable to the Company are excluded from the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net 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,
	2020		2019		2020		2019
Numerator for basic and diluted earnings per share:
Net income	$	89,432	$	67,002	$	241,621	$	186,533
Numerator for basic and diluted earnings per share	$	89,432	$	67,002	$	241,621	$	186,533

Denominator:
Weighted average common shares for basic earnings per share	55,883,879		54,877,666		55,624,727		54,603,903
Net effect of dilutive stock options, restricted stock units and restricted stock awards	2,732,227		2,966,689		2,716,451		2,963,436
Weighted average common shares for diluted earnings per share	58,616,106		57,844,355		58,341,178		57,567,339

Net income per share:
Basic	$	1.60	$	1.22	$	4.34	$	3.42
Diluted	$	1.53	$	1.16	$	4.14	$	3.24

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 2,627 and 40,276 during the three and nine months ended September 30, 2020, respectively.

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 143,617 and 112,757 during the three and nine months ended September 30, 2019, respectively.