EARNINGS PER SHARE

12 Months Ended

Dec. 31, 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 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:



	Year Ended December 31,
(in thousands, except per share amounts)	2015		2014		2013
Basic earnings per share:
Net income	$	39,147	$	59,544	$	57,266
Weighted-average common shares	29,001		29,976		29,421
Basic earnings per share	$	1.35	$	1.99	$	1.95
Diluted earnings per share (1):
Net income	$	39,147	$	59,544	$	57,266
Weighted-average common shares	29,001		29,976		29,421
Effect of dilutive securities:
Employee stock plans	695		853		999
Diluted weighted-average common shares	29,696		30,829		30,420
Diluted earnings per share	$	1.32	$	1.93	$	1.88

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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 all performance-based awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included in the 2015 and 2013 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods.

In the years ended December 31, 2015, 2014 and 2013, approximately 8,000, 37,000 and 122,000 outstanding stock awards were determined to be anti-dilutive, respectively, and therefore were excluded from the computation of diluted earnings per share.