Net Income Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Net Income Per Share

12. Net Income Per Share

We utilize the two-class method to compute net income per share.  The two-class method allocates a portion of net income to participating securities, which includes unvested awards of share-based payments with non-forfeitable rights to receive dividends.  Net income allocated to unvested share-based payments is excluded from net income allocated to common shares.  Any undistributed losses resulting from dividends exceeding net income are not allocated to participating securities.  We declared special dividends of $2.00 per share in 2014 and $1.00 per share in 2012. As a result, dividends exceeded earnings in both periods, which resulted in decreased earnings per share of $0.05 per share in 2014 and $0.01 per share in 2012. Basic net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period.  Diluted net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options.

The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations:

	Year ended December 31,
	2014			2013			2012
	(in thousands)
Net income	$	28,004		$	32,032		$	40,402
Less distributed and undistributed earnings allocated to participating securities	(2,002		)	(916		)	(1,224		)
Net income allocated to common shares	$	26,002		$	31,116		$	39,178
Weighted average common shares outstanding	24,708			24,850			25,007
Incremental shares from assumed conversions of common stock options	4			22			60
Adjusted weighted average common shares outstanding	24,712			24,872			25,067
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	4			8			29