Note 4 — Net Income Per Common Share

Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. During the nine months ended September 30, 2018, 207,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of September 30, 2018. During the nine months ended September 30, 2017, 284,000 performance shares (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of September 30, 2017.

The calculation of the weighted average number of shares of common stock outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Numerator:
Net Income	$	83,046	$	53,716	$	213,266	$	138,978

Denominator:
Weighted average number of common shares outstanding		52,039		51,833		52,002		51,801
Effect of outstanding share-based awards		942		1,247		974		1,286
Weighted average number of shares for diluted net income per common share		52,981		53,080		52,976		53,087

Basic earnings per share	$	1.60	$	1.04	$	4.10	$	2.68
Diluted earnings per share	$	1.57	$	1.01	$	4.03	$	2.62