Earnings Per Share

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



	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Earnings:
Net income (numerator for basic and diluted calculations)	$	232,190	$	236,103	$	377,702	$	312,575
Shares:
Weighted average outstanding shares (denominator for basic calculation)	64,449		64,126		64,401		64,348
Equivalent shares from outstanding stock options	1,159		670		1,204		660
Denominator for diluted calculation	65,608		64,796		65,605		65,008
Earnings per share:
Basic	$	3.60	$	3.68	$	5.86	$	4.86
Diluted	$	3.54	$	3.64	$	5.76	$	4.81

The calculation of common equivalent shares does not include the impact of options having a strike or conversion price that exceeds the average stock price for the earnings period, as the result would be antidilutive. The calculation of common equivalent shares also excludes the impact of outstanding performance contingent shares, as the conditions necessary for their issuance have not been satisfied as of the end of the reporting period. For the three months ended June 30, 2017, 0.2 million stock options and approximately 0.3 million performance contingent shares were excluded from the calculation. For the three months ended June 30, 2016, no stock options and approximately 0.7 million performance contingent shares were excluded from the calculation. Year-to-date amounts for equivalent shares from outstanding stock options and performance contingent shares are the weighted average of the individual quarterly amounts.