Income Per Share

3 Months Ended

Mar. 31, 2020

Income Per Share

Net Income Per Share

10. INCOME PER SHARE

Basic net income per share is calculated by dividing net income by the number of weighted average shares outstanding during the period, without consideration for common stock equivalents.

Diluted net income per share is calculated by adjusting the number of weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method.  

Basic and diluted net income per share were computed as follows:

	Three Months Ended March 31,
	2020		2019
Net income (in thousands) - basic and diluted	$	50,771	$	37,983
Weighted average number of common shares outstanding - basic		33,168,453		34,169,315
Dilutive effect of common stock equivalents:
RSAs with service-based conditions		71,221		92,081
RSAs with market-based conditions		131,024		180,032
RSAs with performance-based conditions		49,778		35,989
Stock options		179,371		225,872
Weighted average number of common shares outstanding - diluted		33,599,847		34,703,289
Basic net income per common share	$	1.53	$	1.11
Diluted net income per common share	$	1.51	$	1.09

The following table summarizes shares excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive:

	Three Months Ended March 31,
	2020		2019
Anti-dilutive common stock equivalents:
RSAs with service-based conditions		5,271		14,706
RSAs with market-based conditions		8,341		19,701
RSAs with performance-based conditions		—		—
Stock options		32,067		123,688
Total anti-dilutive common stock equivalents		45,679		158,095