EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

9. 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)	2022		2021		2022		2021
Basic earnings per share:
Net income	$	55,824	$	41,881	$	102,072	$	81,679
Weighted-average common shares		57,731		60,544		58,480		60,366
Basic earnings per share	$	0.97	$	0.69	$	1.75	$	1.35
Diluted earnings per share: ⁽¹⁾
Net income	$	55,824	$	41,881	$	102,072	$	81,679
Weighted-average common shares		57,731		60,544		58,480		60,366
Effect of dilutive awards:
Employee stock plans		574		922		712		1,115
Diluted weighted-average common shares		58,305		61,466		59,192		61,481
Diluted earnings per share	$	0.96	$	0.68	$	1.72	$	1.33

(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 2022 and 2021 calculations as the shares were not contingently issuable as of the end of the reporting periods.

In the three months ended June 30, 2022, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share; in the comparable period of 2021, stock awards with approximately 0.1 million underlying shares were determined to be anti-dilutive. In the six months ended June 30, 2022 and 2021, no outstanding stock awards were determined to be anti-dilutive.