Earnings Per Share

12 Months Ended

Dec. 31, 2017

The two-class method is utilized for the computation of EPS. The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents. The Company’s restricted stock awards qualify as participating securities as each contain non-forfeitable rights to dividends. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.

The following table sets forth the calculation of EPS for the years ended December 31, 2017, 2016, and 2015:



	Year Ended December 31,
	2017		2016		2015
	(In thousands, except per share amounts)
Weighted average basic common shares outstanding	20,420		21,161		23,148
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock	5		9		4
Weighted average dilutive common shares outstanding	20,425		21,170		23,152
Basic:
Net income	$	213,442	$	147,065	$	93,999
Less: Earnings allocated to participating securities	7,512		5,871		3,595
Earnings available to basic common shares	$	205,930	$	141,194	$	90,404
Basic earnings per common share	$	10.08	$	6.67	$	3.91
Diluted:
Net income	$	213,442	$	147,065	$	93,999
Less: Earnings allocated to participating securities	7,511		5,869		3,595
Earnings available to diluted common shares	$	205,931	$	141,196	$	90,404
Diluted earnings per common share	$	10.08	$	6.67	$	3.90