COMPUTATION OF EARNINGS PER SHARE

The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each year. The computation of diluted earnings per share includes the common stock equivalency of dilutive options granted to employees under the Company's stock incentive plan and shares issuable on redemption of its Convertible Notes.



	For the Year Ended December 31,
	2017		2016		2015
In thousands, except per share amounts
Net earnings	$	49,826	$	58,854	$	60,438

Basic:
Weighted average number of shares outstanding	27,611		27,107		27,177
Basic earnings per share	$	1.80	$	2.17	$	2.22
Diluted:
Weighted average number of shares outstanding	27,611		27,107		27,177
Weighted average shares issuable on exercise of dilutive stock options	160		141		133
Weighted average shares issuable on exercise of convertible notes	466		773		558
Weighted average shares issuable on exercise of warrants related to 2017 Notes	181		51		—
Total	28,418		28,072		27,868

Diluted earnings per share	$	1.75	$	2.10	$	2.17

Equity awards

Excluded from the diluted earnings per share calculation for the years ended December 31, 2017, 2016 and 2015, respectively, are 245,361, 472,328 and 487,071 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price.

2017 Convertible Notes

For the years ended December 31, 2017, 2016 and 2015, shares issuable under the 2017 Notes that were dilutive during the period were included in the calculation of earnings per share as the conversion price for the Convertible Notes was less than the average share price of the Company's stock.

2024 Convertible Notes

For the year ended December 31, 2017, shares issuable under the 2024 Notes were excluded from the calculation of earnings per share as the conversion price for the Convertible Notes was greater than the average share price of the Company's stock.

Warrants

For the years ended December 31, 2017 and 2016, shares issuable under the warrants sold in connection with the Company’s 2017 Convertible Note offering were included in the calculation of diluted earnings per share as the strike price of the warrants was less than the average share price of the Company’s stock. Excluded from the diluted earnings per share calculation for the year ended December 31, 2015, were 3,422,477 shares, associated with these warrants, as they were anti-dilutive. For further information on the Convertible Notes, see Note 10, Debt.