Earnings Per Share

3 Months Ended

Mar. 31, 2016

7.	Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time.

The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2016		2015
Numerator:
Net income	$	9,863	$	24,530
Denominator:
Total weighted average basic shares		33,142		33,000
Shares applicable to stock-based compensation		45		8
Total weighted average diluted shares		33,187		33,008
Net income – basic	$	0.30	$	0.74
Net income – diluted	$	0.30	$	0.74

For the three months ended March 31, 2016 and 2015, 1,947,614 and 1,527,042 shares of common stock underlying stock options, respectively, and 821,756 and 50,610 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive.