Earnings Per Share

12 Months Ended

Dec. 31, 2017

NOTE 14—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 of stock options, RSUs, and PSAs were exercised or converted into stock. 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. For the years ended December 31, 2017, 2016, and 2015, there were 142, 163,564 and 167,849, respectively, weighted-average shares excluded from the calculation of EPS because they were anti-dilutive.

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

(in thousands)	2017		2016		2015
Basic weighted-average shares outstanding		18,766		18,989		19,335
Effect of potential exercise of stock options, RSUs, and performance shares		478		427		328
Diluted weighted-average shares outstanding		19,244		19,416		19,663