EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2016

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
	March 31,
(In thousands, except per share amounts)	2016		2015
Basic earnings per share:
Net income	$	8,843	$	6,343
Weighted-average common shares	28,679		29,309
Basic earnings per share	$	0.31	$	0.22
Diluted earnings per share:⁽¹⁾
Net income	$	8,843	$	6,343
Weighted-average common shares	28,679		29,309
Effect of dilutive awards:
Employee stock plans	565		749
Diluted weighted-average common shares	29,244		30,058
Diluted earnings per share	$	0.30	$	0.21

_______________

(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 outstanding performance-based awards in the 2016 and 2015 calculations as the shares were not contingently issuable as of the end of the reporting periods.

In each of the three months ended March 31, 2016 and 2015, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share.