Note L - Earnings Per Share

12 Months Ended

Dec. 31, 2015

NOTE

—EARNINGS PER SHARE

Earnings Per Share

EPS is computed by dividing reported net income by the weighted-average number of shares outstanding. Diluted EPS considers the potential dilution that could occur if common stock equivalents were exercised or converted into stock. The difference between the basic and diluted weighted-average equivalent shares with respect to the Company’s EPS calculation is due entirely to the assumed exercise of stock options and the vesting and settlement of RSUs.

PSAs are included in the computation of diluted shares only to the extent that the underlying performance conditions (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method.

The Company’s PSAs outstanding at December 31, 2015 did not meet the related performance conditions and therefore were excluded from the calculation of diluted EPS. For the years ended December 31, 2015, 2014, and 2013, approximately 167,849, 151,611, and 173,168 anti-dilutive weighted-average shares were excluded from the calculation of EPS because they were anti-dilutive.

The dilutive effect of stock options and RSUs for each period reported is summarized below:

	2015		2014		2013
	(in thousands)
Basic weighted-average shares outstanding		19,335		19,608		19,755
Effect of potential exercise of stock options and RSUs		328		389		431
Diluted weighted-average shares outstanding		19,663		19,997		20,186