Note 6.Net Earnings Per Share

Basic net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B Non-Voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of June 30, 2018, we did not have any Class B Non-Voting common stock outstanding.

Diluted net earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. For the three and six months ended June 30, 2018, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 951,878 and 1,086,653 shares related to restricted stock units for which the performance metric had yet to be achieved as of June 30, 2018 and 2017, respectively.

The following table sets forth the reconciliation of basic and diluted net income per share (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Basic net income per share:
Numerator
Net income	$	115,211	$	100,925	$	225,862	$	185,862
Denominator
Weighted-average common shares outstanding		104,003,960		103,180,769		103,876,647		103,064,834
Basic net income per share	$	1.11	$	0.98	$	2.17	$	1.80
Diluted net income per share:
Numerator
Net income	$	115,211	$	100,925	$	225,862	$	185,862
Assumed conversion of convertible senior notes		1,735		1,431		3,474		2,847
Net income plus assumed conversions	$	116,946	$	102,356	$	229,336	$	188,709
Denominator
Number of shares used in basic computation		104,003,960		103,180,769		103,876,647		103,064,834
Weighted-average effect of dilutive securities		8,420,622		8,383,714		8,449,859		8,425,849
Number of shares used in per share computation		112,424,582		111,564,483		112,326,506		111,490,683
Diluted net income per share	$	1.04	$	0.92	$	2.04	$	1.69