Earnings per Share

9 Months Ended

Sep. 30, 2016

(3) Earnings Per Share (EPS)

Basic EPS is calculated by dividing net income for a given period by the weighted-average number of common shares outstanding during that period, to which dilutive securities are included in the calculation of diluted EPS, using the treasury stock method. The calculations of the basic and diluted EPS for the three and nine months ended September 30, 2016 and 2015 are presented below:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2016		2015		2016		2015
Net income	$	28,801	$	19,677	$	65,561	$	36,580

Weighted-average common shares outstanding - basic		49,185		49,070		49,132		48,951
Effect of diluted stock options and unvested restricted stock		915		705		517		767
Weighted-average common shares outstanding - diluted		50,100		49,775		49,649		49,718

Net income per share:
Basic	$	0.59	$	0.40	$	1.33	$	0.75
Diluted	$	0.57	$	0.40	$	1.32	$	0.74

Anti-dilutive shares not included above		610		1,580		1,339		909

With regard to diluted EPS and the impact of the Convertible Notes (as discussed in Note 5) on the diluted EPS calculation, because the Company has the intent and ability to settle the principal amount of the Convertible Notes in cash, per ASC 260, Earnings Per Share, the settlement of the principal amount has no impact on diluted EPS. ASC 260 also requires any potential conversion premium associated with the Convertible Notes’ conversion option to be considered in the calculation of diluted EPS when the Company's average stock price for the periods presented is higher than the initial conversion price of $30.25. As this was not the case during the three and nine months ended September 30, 2016, the conversion premium also has no impact on diluted EPS for those periods.