Net Income Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Net Income per Share

8. 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 include 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.  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:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
	(in thousands)
Net income	$	11,950		$	8,385		$	33,051		$	19,840
Less distributed and undistributed earnings allocated to participating securities	(303		)	(243		)	(822		)	(576		)
Net income allocated to common shares	$	11,647		$	8,142		$	32,229		$	19,264
Weighted average common shares outstanding	24,030			24,650			24,502			24,747
Incremental shares from assumed conversions of common stock options	6			2			7			5
Adjusted weighted average common shares outstanding	24,036			24,652			24,509			24,752
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	—			16			—			5