Net Income Per Share

9 Months Ended

Sep. 30, 2016

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,
	2016			2015			2016			2015
	(in thousands)
Net income	$	14,065		$	11,950		$	56,471		$	33,051
Less distributed and undistributed earnings allocated to participating securities	(330		)	(303		)	(1,283		)	(822		)
Net income allocated to common shares	$	13,735		$	11,647		$	55,188		$	32,229
Weighted average common shares outstanding	20,843			24,030			20,895			24,502
Incremental shares from assumed conversions of common stock options	13			6			11			7
Adjusted weighted average common shares outstanding	20,856			24,036			20,906			24,509