Net Income Per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Net Income Per Share

11. 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 a special dividend of $2.00 per share in 2014. As a result, dividends exceeded earnings, which resulted in decreased earnings per share of $0.05 per share in 2014. 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,
	2015			2014			2013
	(in thousands)
Net income	$	39,390		$	28,004		$	32,032
Less distributed and undistributed earnings allocated to participating securities	(981		)	(2,002		)	(916		)
Net income allocated to common shares	$	38,409		$	26,002		$	31,116
Weighted average common shares outstanding	24,308			24,708			24,850
Incremental shares from assumed conversions of common stock options	7			4			22
Adjusted weighted average common shares outstanding	24,315			24,712			24,872
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect	—			4			8