Earnings Per Share

9 Months Ended

Sep. 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				Nine Months Ended
		September 30,				September 30,
(in thousands, except per share data)			2016		2015		2016		2015
Net income		$	21,742	$	20,565	$	45,479	$	55,980

Denominator for basic earnings per share -
	weighted-average number of common
	shares outstanding during the period		48,965		51,192		49,377		51,940
Incremental common shares attributable to
	exercise of dilutive options		323		292		304		326
Incremental common shares attributable
	to outstanding restricted stock units		126		104		197		182
Denominator for diluted earnings per share			49,414		51,588		49,878		52,448

Basic earnings per share		$	0.44	$	0.40	$	0.92	$	1.08
Diluted earnings per share		$	0.44	$	0.40	$	0.91	$	1.07

Options to purchase 0.6 million and 0.9 million common shares for the three- and nine-month periods ended September 30, 2016, respectively, were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Options to purchase 1.3 million common shares for both the three- and nine-month periods ended September 30, 2015 were not included in the computation of diluted earnings per share because their effect would also have been anti-dilutive.