Net Income Per Common Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income Per Common Share

Net Income Per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Weighted average common shares outstanding for the basic net income per common share calculation includes vested restricted stock units (RSUs) granted to nonemployee directors as there are no conditions under which those shares will not be issued. Diluted net income per common share is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period. Other potentially dilutive weighted average common shares include the dilutive effect of stock options, RSUs, and performance stock units (PSUs) for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation expense, if any, for future service that has not yet been recognized, and the amount of tax benefits that would be recorded in additional paid-in capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted net income per common share:

	Three Months Ended September 30				Nine Months Ended September 30
	2014		2013		2014		2013
	(thousands, except per-share data)
Net income	$	32,285	$	15,860	$	64,268	$	107,108
Weighted average common shares outstanding during the period (for basic calculation)	39,423		40,625		39,407		40,486
Dilutive effect of other potential common shares	58		15		52		6
Weighted average common shares and potential common shares (for diluted calculation)	39,481		40,640		39,459		40,492
Net income per common share - Basic	$	0.82	$	0.39	$	1.63	$	2.65
Net income per common share - Diluted	$	0.82	$	0.39	$	1.63	$	2.65

The computation of the dilutive effect of other potential common shares excludes stock awards representing 0.1 million shares and 0.2 million shares of common stock, respectively, in the three months ended September 30, 2014 and 2013, and 0.3 million shares and 0.2 million shares of common stock, respectively, in the nine months ended September 30, 2014 and 2013. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.