Earnings Per Share

6 Months Ended

Jun. 30, 2016

Note 4 – Earnings Per Share

Basic earnings per share is computed using the weighted-average number of shares outstanding. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents. Stock equivalents include common shares issuable upon the exercise of stock options and other equity instruments, and are computed using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the amount of estimated excess tax benefits that would be recorded in paid-in-capital, if any, when the option is exercised or the instrument vests are assumed to be used to repurchase shares in the current period.

The following table sets forth the calculation of basic and diluted earnings per share:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
(in thousands, except per share data)			2016		2015		2016		2015
Net income		$	12,685	$	21,210	$	23,737	$	35,415

Denominator for basic earnings per share -
	weighted-average number of common
	shares outstanding during the period		49,323		52,180		49,586		52,321
Incremental common shares attributable to
	exercise of dilutive options		287		386		289		387
Incremental common shares attributable
	to outstanding restricted stock units		57		105		167		176
Denominator for diluted earnings per share			49,667		52,671		50,042		52,884

Basic earnings per share		$	0.26	$	0.41	$	0.48	$	0.68
Diluted earnings per share		$	0.26	$	0.40	$	0.47	$	0.67

Options to purchase 1.0 million common shares for both the three- and six-month periods ended June 30, 2016 were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Options to purchase 1.0 million common shares for both the three- and six-month periods ended June 30, 2015, respectively, were not included in the computation of diluted earnings per share because their effect would also have been anti-dilutive.