Earnings Per Share

9 Months Ended

Sep. 30, 2017

Note 3 – 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, and the amount of compensation cost, if any, for future service that the Company has not yet recognized 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)			2017		2016		2017		2016
Net income		$	17,512	$	21,742	$	44,375	$	45,479

Denominator for basic earnings per share -
	weighted-average number of common
	shares outstanding during the period		49,865		48,965		49,716		49,377
Incremental common shares attributable to
	exercise of dilutive options		268		323		319		304
Incremental common shares attributable
	to outstanding restricted stock units		197		126		257		197
Denominator for diluted earnings per share			50,330		49,414		50,292		49,878

Basic earnings per share		$	0.35	$	0.44	$	0.89	$	0.92
Diluted earnings per share		$	0.35	$	0.44	$	0.88	$	0.91

Options to purchase 0.6 million and 1.0 million common shares for both 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.