EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units and both short- and long-term performance-based awards, and the assumed issuance of awards under the stock purchase plan, as computed using the treasury stock method.

A summary of the earnings per share calculation is as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands, except per share amounts)	2015		2014		2015		2014
Basic earnings per share:
Net income	$	11,513	$	16,111	$	26,446	$	45,190
Weighted-average common shares	28,855		30,013		29,175		30,186
Basic earnings per share	$	0.40	$	0.54	$	0.91	$	1.50
Diluted earnings per share:⁽¹⁾
Net income	$	11,513	$	16,111	$	26,446	$	45,190
Weighted-average common shares	28,855		30,013		29,175		30,186
Effect of dilutive awards:
Employee stock plans	443		744		681		867
Diluted weighted-average common shares	29,298		30,757		29,856		31,053
Diluted earnings per share	$	0.39	$	0.52	$	0.89	$	1.46

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(1)

The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the 2015 and 2014 awards in the 2015 and 2014 calculations, respectively, as those shares were not contingently issuable as of the end of the period.

In the three and nine months ended September 30, 2015, 69,000 and 8,000 outstanding stock awards were determined to be anti-dilutive, respectively, and therefore were excluded in the computation of diluted earnings per share. In the three and nine months ended September 30, 2014, no outstanding stock awards were determined to be anti-dilutive, and therefore no stock awards were excluded in the computation of diluted earnings per share.