Basis of Presentation and Consolidation (Tables)

6 Months Ended

Jun. 30, 2019

Computation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:



(Number of shares and dollar amounts in thousands except per share amounts)	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator
Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders	$	8,821	$	15,008	$	15,801	$	23,292
Denominator
Denominator for basic earnings per share - weighted average shares outstanding	50,165		50,436		50,133		50,636
Effect of dilutive securities - stock options and other stock units	197		154		237		247
Denominator for diluted earnings per share - adjusted weighted average shares outstanding	50,362		50,590		50,370		50,883
Earnings per share:
Basic	$	0.18	$	0.30	$	0.32	$	0.46
Diluted	$	0.18	$	0.30	$	0.31	$	0.46

Summary of Activity in Product Warranty Liabilities

Warranties – Warranties are provided on the sale of certain of the Company’s products and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties the Company offers is on a prorated basis. The Company provides for the estimated cost of product warranties based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities, which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets:



	Six Months Ended June 30,
	2019			2018
Reserve at beginning of year	$	12,431		$	12,093
Additions	5,412			7,398
Payments	(5,989		)	(6,963		)
Reserve at period end	$	11,854		$	12,528