Net Income Per Share (Notes)

6 Months Ended

Jun. 30, 2021


7.			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. 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 time-vested and performance-based restricted stock units (“RSUs”) and 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 June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020

Net income	$	25,154	$	51,851	$	87,076	$	113,943
Less distributed and undistributed earnings allocated to participating securities	(37)		(276)		(193)		(724)
Net income allocated to common shares	$	25,117	$	51,575	$	86,883	$	113,219

Weighted average common shares outstanding	38,591		38,567		38,410		38,684
Incremental shares from assumed time-vested and performance-based RSU awards and conversions of common stock options	232		79		427		173
Adjusted weighted average common shares outstanding	38,823		38,646		38,837		38,857