Earnings per Common Share

6 Months Ended

Jun. 30, 2015

Note 3. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share reflects the potential dilution that could occur if convertible securities, or other contracts to issue common stock, were exercised or converted into common stock. Diluted earnings per common share is computed by dividing the sum of net income plus interest expense on the convertible notes, by the weighted-average number of diluted common shares. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with ASC Topic 260, “Earnings per Share.” Dilutive securities include the common stock equivalents of convertible notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units and performance share units granted to employees and non-employee directors (see Note 10).

Weighted-average diluted common shares outstanding is the same as weighted-average basic common shares outstanding in periods when a net loss is reported or in periods when diluted earnings per share is higher than basic earnings per share.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Earnings per common share—basic
Net income	$	12,818	$	3,369	$	48,637	$	58,681
Weighted-average common shares outstanding—basic	78,395		77,633		78,076		77,502
Basic earnings per common share	$	0.16	$	0.04	$	0.62	$	0.76
Earnings per common share—diluted
Net income	$	12,818	$	3,369	$	48,637	$	58,681
Add: Interest on convertible debt	1,260		—		2,506		2,475
Net income including assumed conversions	$	14,078	$	3,369	$	51,143	$	61,156
Weighted-average common shares outstanding—basic	78,395		77,633		78,076		77,502
Convertible notes weighted-average shares outstanding	15,000		—		15,000		15,000
Options and restricted stock	1,518		927		1,330		865
Weighted-average common shares outstanding—diluted	94,913		78,560		94,406		93,367
Dilutive earnings per common share	$	0.15	$	0.04	$	0.54	$	0.66

For the three and six months ended June 30, 2015, securities outstanding totaling approximately 565,000 and 605,000 shares, respectively, comprised of stock options, were excluded from the calculation of earnings per common share—diluted, as their effect would be antidilutive. For the three months ended June 30, 2014, securities outstanding totaling approximately 15,981,000 shares (including stock options and common shares underlying convertible senior notes of 15,000,000 shares) were excluded from the earnings per share calculation as their effect would be antidilutive, and 1,053,000 shares underlying stock options were excluded for the six months ended June 30, 2014 as their effect would be antidilutive.