EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

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				Nine Months Ended
(In thousands, except per share amounts)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Basic earnings per share:
Net income	$	17,099	$	17,667	$	35,177	$	47,248
Weighted-average common shares	29,385		29,365		29,213		29,558
Basic earnings per share	$	0.58	$	0.60	$	1.20	$	1.60
Diluted earnings per share:⁽¹⁾
Net income	$	17,099	$	17,667	$	35,177	$	47,248
Weighted-average common shares	29,385		29,365		29,213		29,558
Effect of dilutive awards:
Employee stock plans	481		633		496		723
Diluted weighted-average common shares	29,866		29,998		29,709		30,281
Diluted earnings per share	$	0.57	$	0.59	$	1.18	$	1.56

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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 2019 and 2018 calculations as the shares were not contingently issuable as of the end of the reporting periods.

In the three and nine months ended September 30, 2019 and 2018, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share.