Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution of common stock equivalent shares that could occur if all unvested shares were to vest. Common stock equivalent shares are calculated using the treasury stock method, as applicable. The dilutive effect is computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding plus the effect of the outstanding unvested performance share awards. Average shares used in computing the basic and diluted earnings per share are as follows:



	Three Months Ended
	March 31, 2018	March 31, 2017
Basic computation	49,416,230	48,385,738
Dilutive effect of:
Performance share awards (1)	67,622	117,658

Diluted computation	49,483,852	48,503,396

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(1) Performance share awards are included in diluted weighted average number of shares outstanding based upon what would be issued if the end of the most recent reporting period was the end of the term of the award. The dilutive share calculation for 2018 excludes 34,913 shares under outstanding performance share awards because the inclusion of these awards would have been antidilutive under the treasury stock method.