Earnings Per Share

6 Months Ended

Jun. 30, 2016

Basic earnings or loss per share is calculated by dividing net earnings or loss attributable to Encore by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock, and the dilutive effect of the convertible senior notes.

A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Weighted average common shares outstanding—basic	25,742	25,885	25,646	25,978
Dilutive effect of stock-based awards	132	196	225	283
Dilutive effect of convertible senior notes	—	838	—	856
Weighted average common shares outstanding—diluted	25,874	26,919	25,871	27,117

Anti-dilutive employee stock options outstanding were zero or negligible during the periods presented above.