Earnings Per Share

The Company reports basic and diluted earnings per share. Basic earnings per share is computed by dividing net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the reported period. Diluted earnings per share reflect the potential dilution related to equity-based incentives using the treasury stock method. The calculation and reconciliation of basic and diluted earnings per share for the three and six months ended June 30 (in thousands, except per share data) follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Net income	$	130,987	$	116,253	$	254,680	$	227,343
Denominator for basic earnings per share	92,013		92,665		92,060		92,591
Dilutive securities	2,210		2,614		2,332		2,546
Denominator for diluted earnings per share	94,223		95,279		94,392		95,137
Basic earnings per share	$	1.42	$	1.25	$	2.77	$	2.46
Diluted earnings per share	$	1.39	$	1.22	$	2.70	$	2.39

Diluted earnings per share for the three month periods ended June 30, 2017 and 2016 excludes the effect of 3.7 million and 1.5 million shares of common stock, respectively, that may be issued upon the exercise of employee stock options because such effect would be antidilutive. Diluted earnings per share also excludes the effect of 0.2 million and 0.3 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for the three month periods ended June 30, 2017 and 2016, respectively.