Earnings per Share

9 Months Ended

Sep. 30, 2015

Earnings per Share

Earnings per Share

7.     Earnings Per Share

Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding during the period. Our dilutive common share equivalents consist of stock options and restricted stock awards and units.

The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share data):

Basic and diluted

	Three months ended				Nine months ended
	September 30,				September 30,
	2015		2014		2015		2014
Net income	$	6,862	$	6,950	$	15,802	$	16,341
Weighted average common shares outstanding — basic	87,299		87,736		88,019		87,660
Plus: net effect of dilutive stock options	94		272		157		293
Plus: net effect of dilutive restricted stock awards and units	399		225		275		192
Weighted average common shares outstanding — diluted	87,792		88,233		88,451		88,145
Net income per common share — basic	$	0.08	$	0.08	$	0.18	$	0.19
Net income per common share — diluted	$	0.08	$	0.08	$	0.18	$	0.19

For the three months ended September 30, 2015 and 2014, 3,708,228 and 2,251,303 stock options, respectively, and 71,581 and 2,367 restricted stock units, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

For the nine months ended September 30, 2015 and 2014, 3,490,887 and 2,395,158 stock options, respectively, 169,682 and 79,947 restricted stock awards and units, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.