Earnings Per Share (Notes)

3 Months Ended

Mar. 31, 2016

Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares consist of: i) unvested employee stock purchase plan shares; ii) contingently issuable time-based and performance-based restricted stock units, along with associated dividend equivalent rights; and iii) shares issuable pursuant to an equity forward sale agreement (EFSA). See Note 6, Equity, for additional information on the EFSA and its impact on earnings per share. Unvested performance-based restricted stock units and associated dividend equivalent rights are included in dilutive potential common shares only after the performance criteria have been met.

For the three month periods ended March 31, 2016 and 2015 unvested performance-based restricted stock units and related dividend equivalent rights of approximately 304,000 and 303,000, respectively, were excluded from the dilutive calculation because the performance goals had not been met.

Net income is the same for both the basic and diluted earnings per share computations. The reconciliations of the denominators of the basic and diluted earnings per share computations are as follows (in thousands):



	Three Months Ended March 31,
	2016	2015
Weighted-average common shares outstanding—basic	88,833	78,271
Dilutive effect of potential common shares	—	3,195
Weighted-average common shares outstanding—diluted	88,833	81,466