XML 25 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
NET INCOME PER SHARE
9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
NET INCOME PER SHARE
NET INCOME PER SHARE
 
The Company computes basic net income per share by dividing net income applicable to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted net income per share is based upon the weighted-average number of common and common equivalent shares outstanding during the period.
 
Common equivalent shares related to stock options, restricted stock units and performance share units are calculated using the treasury stock method.  Performance share units are included in the weighted-average common equivalent shares based on the number of shares that would be issued if the end of the reporting period were the end of the performance period, if the result would be dilutive.
 
The Company's convertible notes have net share settlement features requiring the Company upon conversion to settle the principal amount of the debt for cash and the conversion premium for cash or shares of the Company's common stock, at the Company's option.  The convertible notes are included in the calculation of diluted net income per share if their inclusion is dilutive under the treasury stock method.
 
A reconciliation of the weighted-average number of shares outstanding used in calculating diluted earnings per share is as follows (in thousands): 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Weighted-average number of basic common shares outstanding
 
48,981

 
49,420

 
49,100

 
49,548

Weighted-average dilutive stock options, restricted stock units and performance share units
 
273

 
171

 
278

 
212

Assumed conversion of Convertible Senior Notes
 
718

 
384

 
686

 
288

Weighted-average number of diluted common and common equivalent shares outstanding
 
49,972

 
49,975

 
50,064

 
50,048

Anti-dilutive potential common shares
 
1,948

 
2,472

 
2,006

 
2,538


 
Anti-dilutive potential common shares for the three and nine months ended September 30, 2017 include approximately 1.5 million and 1.6 million shares, respectively, that could be issued under the Company's outstanding convertible notes.  Under the treasury stock method, the convertible notes will generally have an anti-dilutive impact on net income per share if the conversion prices for the convertible notes exceed the Company's average stock price.