NET INCOME PER SHARE

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. Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares of common stock (Class A common stock and Class B common stock) outstanding during the period. Diluted EPS is computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. Potentially dilutive securities include stock options, restricted stock units ("RSUs") and restricted stock awards ("RSAs"). Under the treasury stock method, dilutive securities are assumed to be exercised at the beginning of the periods and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive to EPS.

The Company has issued 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 on shares of Class A and Class B common stock. 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. 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.

The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Basic
Numerator:
Net income	$	8,241		$	7,807		$	17,369		$	26,423
Undistributed earnings allocated to participating securities	(273		)	(36		)	(464		)	(115		)
Net income attributable to common stockholders	$	7,968		$	7,771		$	16,905		$	26,308
Denominator:
Weighted average shares used in computing net income per share attributable to common stockholders—basic	141,226			150,732			142,861			151,240
Net income per share attributable to common stockholders—basic	$	0.06		$	0.05		$	0.12		$	0.17
Diluted
Numerator:
Net income attributable to common stockholders	$	7,968		$	7,771		$	16,905		$	26,308
Denominator:
Number of shares used for basic EPS computation	141,226			150,732			142,861			151,240
Effect of dilutive securities	473			830			466			882
Weighted average shares used in computing net income per share attributable to common stockholders—diluted	141,699			151,562			143,327			152,122
Net income per share attributable to common stockholders—diluted	$	0.06		$	0.05		$	0.12		$	0.17

The computation of diluted EPS does not include certain awards, on a weighted average basis, for the three and nine months ended September 30, 2017 and 2016, respectively, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive	42	240	138	138