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, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, 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)	2018		2017
Basic earnings per share:
Net income	$	14,200	$	14,099
Weighted-average common shares	29,799		29,456
Basic earnings per share	$	0.48	$	0.48
Diluted earnings per share:⁽¹⁾
Net income	$	14,200	$	14,099
Weighted-average common shares	29,799		29,456
Effect of dilutive awards:
Employee stock plans	753		792
Diluted weighted-average common shares	30,552		30,248
Diluted earnings per share	$	0.46	$	0.47

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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 outstanding performance-based awards in the 2018 and 2017 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, 2018 and 2017, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share.