Earnings Per Share

9 Months Ended

Sep. 30, 2019

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 nine months ended September 30, 2019 and 2018 is as follows (in thousands, except per share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income	$	225,805	$	157,694	$	659,563	$	509,483
Denominator for basic earnings per share	86,662		88,456		86,332		89,126
Dilutive securities	3,860		3,625		3,644		3,545
Denominator for diluted earnings per share	90,522		92,081		89,976		92,671
Basic earnings per share	$	2.61	$	1.78	$	7.64	$	5.72
Diluted earnings per share	$	2.49	$	1.71	$	7.33	$	5.50

Diluted earnings per share for the three months ended September 30, 2019 and 2018 excludes the effect of 27 thousand and 56 thousand shares of common stock that may be issued upon the exercise of employee stock options because such effect would be anti-dilutive, respectively. Diluted earnings per share also excludes the effect of 0.2 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for both the three month periods ended September 30, 2019 and 2018, respectively.