Earnings per Share

9 Months Ended

Sep. 30, 2015

3. EARNINGS PER SHARE

Earnings per share is computed as follows:


	Three Months Ended September 30,												Nine Months Ended September 30,
	2015						2014						2015						2014
	Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount
Basic earnings per share	$	97,950		86,006	$	1.14	$	87,176		86,715	$	1.01	$	60,161		86,096	$	0.70	$	75,365		87,329	$	0.86
Effect of dilutive incentive-based awards				94						309						111						319

Diluted earnings per share	$	97,950		86,100	$	1.14	$	87,176		87,024	$	1.00	$	60,161		86,207	$	0.70	$	75,365		87,648	$	0.86

In accordance with the Earnings Per Share Topic of the ASC, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period (excluding treasury stock and unvested restricted stock). The shares of unvested restricted stock are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, only vested shares of outstanding restricted stock are included in the calculation of basic earnings per share. The weighted average number of repurchased shares during the period, if any, which are held as treasury stock are excluded from common stock outstanding.

Diluted earnings per share is determined using the treasury stock method based on the dilutive effect of unvested restricted stock and certain shares of common stock that are issuable upon exercise of stock options. There were approximately 2,463,000 and 27,000 anti-dilutive shares of common stock excluded from the computation of diluted earnings per share during the three months ended September 30, 2015 and 2014, respectively. During the nine months ended September 30, 2015 and 2014, there were approximately 1,599,000 and 21,000 anti-dilutive shares of common stock excluded from the computation of diluted earnings per share, respectively.

The Company’s outstanding performance share awards are considered contingently issuable shares and are excluded from the calculation of diluted earnings per share as the performance criteria has not been met as of the end of the reporting period. See further discussion in Note 11–Equity-Based Compensation.