Net Income Per Share

6 Months Ended

Dec. 31, 2015

10. Net Income Per Share

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 and six months ended December 31, 2015 and 2014 are as follows:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
	(Dollars and Shares in Thousands, Except per Share Data)

Net income	$	36,683	$	30,464	$	73,454	$	59,432


Weighted average shares outstanding	83,315		89,942		83,596		90,562

Dilutive impact from:
Share-based payment awards	388		529		439		634

Dilutive weighted average shares outstanding	83,703		90,471		84,035		91,196


Income per share
Basic	$	0.44	$	0.34	$	0.88	$	0.66
Dilutive	$	0.44	$	0.34	$	0.87	$	0.65

For the three and six months ended December 31, 2015 and 2014, certain employee equity awards were anti-dilutive based on the treasury stock method. Additionally, during the three and six months ended December 31, 2015, options to purchase 589,299 shares of our common stock were not included in the computation of dilutive weighted average shares outstanding, as of December 31, 2015, because their exercise prices ranged from $41.87 per share to $47.40 per share and were greater than the average market price of our common stock during the three and six months ended December 31, 2015. These options were outstanding as of December 31, 2015 and expire at various dates through August 3, 2025.

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 December 31, 2015 and 2014:

	Three Months Ended		Six Months Ended
	December 31,		December 31,
	2015	2014	2015	2014
	(Shares in Thousands)

Employee equity awards	1,108	832	1,072	640