Net Income per Share

3 Months Ended

Mar. 31, 2020

Basic and diluted net income per share was calculated as follows (in thousands, except per share data):



	For the three months ended March 31,
	2020		2019
Numerator:
Net income	$	21,545	$	110,447
Denominator:
Weighted-average shares used to compute net income per share—basic	51,106		51,511
Dilutive restrictive stock awards	167		119
Weighted-average shares used to compute net income per share—diluted	51,273		51,630
Net income per share—basic and diluted	$	0.42	$	2.14
Net income per share—diluted	$	0.42	$	2.14

2017 Equity Plan

On February 13, 2020, the Company awarded 420,303 restricted stock unit awards under the Company's 2017 Equity Incentive Plan (the "2017 Equity Plan"). These awards have certain service-based, performance-based and market-based vesting conditions, as applicable. The service-based awards vest over a period of three years and the performance-based and market-based awards are based on the Company's performance in each of the three years. The Company recognized approximately $0.5 million in stock compensation expense associated with these awards for the three months ended March 31, 2020.

As of March 31, 2020, there were 248,294 restricted stock unit awards for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 23,295 share impact on dilutive weighted average shares for the three months ended March 31, 2020. As of March 31, 2020, there were 454,130 restricted stock unit awards for which the performance-based and market-based vesting conditions were not met as of the measurement date and, as such, these awards were excluded from basic and diluted earnings per share. Based on the Company's closing share price on March 31, 2020, there were 141,243 restricted stock unit awards classified as a liability. The Company considered the impact on diluted earnings as if the award was settled in cash or in shares. These awards had a 87,879 share impact on dilutive weighted average shares for the three months ended March 31, 2020.

As of March 31, 2020, there were 43,580 shares of the Company's common stock contingently issuable upon the settlement of a vested phantom unit award granted under our 2016 Equity Plan (as defined below) and 13,157 shares of its common stock contingently issuable upon the settlement of a vested restricted stock unit award under the 2017 Equity Plan. The settlement date for these awards is the earlier of a change in control as described in the 2016 Equity Plan or 2017 Equity Plan, as applicable, or five years from the grant date. These awards are vested and, as such, have been included in the weighted average shares used to compute basic and diluted net income per share.

2016 Equity Plan

As of March 31, 2020, there were 73,429 restricted stock unit awards granted under the Company's 2016 Equity Incentive Plan (the "2016 Equity Plan") to certain directors and employees, for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 55,329 share impact on dilutive weighted average shares for the three months ended March 31, 2020.