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				Six Months Ended
	June 30,				June 30,
(In thousands, except per share amounts)	2018		2017		2018		2017
Basic earnings per share:
Net income	$	15,381	$	13,902	$	29,581	$	28,001
Weighted-average common shares	29,505		29,720		29,651		29,589
Basic earnings per share	$	0.52	$	0.47	$	1.00	$	0.95
Diluted earnings per share:⁽¹⁾
Net income	$	15,381	$	13,902	$	29,581	$	28,001
Weighted-average common shares	29,505		29,720		29,651		29,589
Effect of dilutive awards:
Employee stock plans	678		734		736		781
Diluted weighted-average common shares	30,183		30,454		30,387		30,370
Diluted earnings per share	$	0.51	$	0.46	$	0.97	$	0.92

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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 the three and six months ended June 30, 2018 and 2017, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share.