Net Income Per Share

3 Months Ended

Sep. 30, 2020

Basic income per share is determined by dividing net income by the weighted average common shares outstanding during the period. Diluted income per share is determined by dividing net income by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted net income per share based on the treasury stock method.

The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the three months ended September 30, 2020 and 2019 are as follows:


	Three Months Ended September 30,
	2020		2019
	(Dollars and Shares in Thousands, Except per Share Data)
Net income	$	32,711	$	53,514

Weighted average shares outstanding	67,729		68,441

Dilutive impact from:
Employee equity awards	570		876
Dilutive weighted average shares outstanding	68,299		69,317

Income per share
Basic	$	0.48	$	0.78
Dilutive	$	0.48	$	0.77

For the three months ended September 30, 2020 and 2019, certain employee equity awards were anti-dilutive based on the treasury stock method. The following employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of September 30, 2020 and 2019:


	Three Months Ended September 30,
	2020	2019
	(Shares in Thousands)
Employee equity awards	716	689

Included in the table above are options to purchase 499,413 shares of our common stock during the three months ended September 30, 2020, which were not included in the computation of dilutive weighted average shares outstanding, because their exercise prices ranged from $115.36 per share to $138.14 per share and were greater than the average market price of our common stock during the period then ended. These options were outstanding as of September 30, 2020 and expire at various dates through September 13, 2030.