EARNINGS PER SHARE

Basic earnings per share is calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted-average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise or settlement of stock awards (calculated using the treasury stock method) during the period they were outstanding.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share information):



	Three Months Ended
	March 31,
	2018		2017
Numerator:
Income from continuing operations	$	144,259	$	70,325
Loss from discontinued operations, net of income taxes	—		(42,704		)
Net income	$	144,259	$	27,621
Denominator:
Denominator for basic net earnings per share - weighted-average shares outstanding	139,248		153,247
Effect of dilutive employee stock awards	2,780		3,446
Effect of dilutive Convertible Notes	4,360		1,676
Denominator for diluted net earnings per share - weighted-average shares outstanding	146,388		158,369

Basic earnings (loss) per share:
Income from continuing operations	$	1.04	$	0.46
Loss from discontinued operations	—		(0.28		)
Basic net earnings per share	$	1.04	$	0.18
Diluted earnings (loss) per share:
Income from continuing operations	$	0.99	$	0.44
Loss from discontinued operations	—		(0.27		)
Diluted net earnings per share:	$	0.99	$	0.17
Anti-dilutive weighted-average shares from stock awards	84		54

The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share does not include common stock issuable upon the exercise of the Company's warrants. The effects of these potentially issuable shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive.

The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on its 0.500% Convertible Notes due 2019 (the “Convertible Notes”) on diluted earnings per share, if applicable, because upon conversion the Company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion spread will have a dilutive impact on diluted earnings per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of $71.91 per share of common stock. For the three months ended March 31, 2018 and 2017, the average market price of the Company's common stock exceeded the conversion price; therefore, the dilutive effect of the Convertible Notes was included in the denominator of diluted earnings per share. In addition, the Company uses the treasury stock method for calculating any potential dilutive effect related to the warrants. See Note 11 for detailed information on the Convertible Notes offering.