3. NET INCOME PER SHARE (in thousands, except per share amounts)

During September 2014, the Company completed a holding company reorganization. As part of the reorganization, the Company implemented a multi-class stock structure. The Company has retrospectively presented the impact on net income per share (EPS) of this reorganization by calculating EPS based on the newly authorized, issued and outstanding Class A and Class B common stock. Class A and Class B common stock shares were outstanding during the three and six months ended June 30, 2015. Only shares of Class B common stock were outstanding during the three and six months ended June 30, 2014. Holders of all outstanding classes of common stock participate ratably in earnings on an identical per share basis as if all shares were a single class.

During the three months ended June 30, 2015, the Company issued restricted share awards of Class A common stock (RSAs) under the 2015 Omnibus Incentive Plan. The Company considers issued and unvested RSAs to be participating securities as the holders of these RSAs have a non-forfeitable right to dividends in the event of the Company's declaration of a dividend for Class A and Class B common shares. Subsequent to the issuance of the participating securities, the Company applied the two-class method required in calculating net income per share of Class A and Class B common stock.

Undistributed net income for a given period is apportioned to participating securities based on the weighted-average shares of each class of common stock outstanding during the applicable period as a percentage of the total weighted-average shares outstanding during the same period.

Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less earnings attributable to participating securities. The net income per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the period has been distributed. As the liquidation and dividend rights are identical for both classes of common stock, the net income attributable to common stockholders is allocated on a proportionate basis.

Basic net income per share of common stock is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. All participating securities are excluded from the basic weighted-average shares of common stock outstanding. Unvested RSAs are excluded from the calculation of the weighted-average shares of common stock until vesting occurs, as the restricted shares are subject to forfeiture and cancellation until vested.

Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average shares outstanding, including potentially dilutive shares of common stock assuming the dilutive effect of potential shares of common stock for the period determined using the treasury stock method.

For purposes of the diluted net income per share attributable to common stockholders calculation, unvested shares of common stock resulting from RSAs are considered to be potentially dilutive shares of common stock.

The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Basic
Numerator:
Net income	$	26,136	$	23,630	$	39,895	$	38,187
Undistributed earnings allocated to participating securities		5		—		4		—

Net income attributable to common stockholders—basic	$	26,131	$	23,630	$	39,891	$	38,187


Denominator:
Weighted average shares used in computing net income per share attributable to common stockholders—basic		147,648		134,523		141,524		134,585

Net income per share attributable to common stockholders—basic	$	0.18	$	0.18	$	0.28	$	0.28


Diluted
Numerator:
Net income attributable to common stockholders—diluted	$	26,131	$	23,630	$	39,891	$	38,187


Denominator:
Number of shares used for basic EPS computation		147,648		134,523		141,524		134,585
Effect of dilutive securities		3,651		2,291		3,625		1,050

Weighted average shares used in computing net income per share attributable to common stockholders—diluted		151,299		136,814		145,149		135,635

Net income per share attributable to common stockholders—diluted	$	0.17	$	0.17	$	0.27	$	0.28

The computation of diluted EPS does not include certain unvested awards, on a weighted average basis, for the three and six months ended June 30, 2015 and 2014, respectively, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive		103		4,295		63		4,295