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Earnings Per Common Share (EPS)
 3 Months Ended
Mar. 31, 2017
Earnings Per Common Share (EPS) [Abstract]  
Earnings Per Common Share (EPS)

(3)     Earnings Per Common Share (EPS)



Basic EPS and diluted EPS are calculated by dividing net income by the following: for basic EPS, the weighted-average number of common shares outstanding during the period; and for diluted EPS, the sum of the weighted-average number of both outstanding common shares and potentially dilutive securities. The Company calculates the number of potentially dilutive securities using the treasury stock method for its granted but unvested restricted stock units and stock options and vested but unexercised stock options. The calculations of basic and diluted EPS for the three months ended March 31, 2017 and 2016 are presented below:





 

 

 

 

 



 

 

 

 

 



Three Months Ended March 31,

(in thousands, except per share amounts)

2017

 

2016

Net income

$

 13,764 

 

$

 15,400 



 

 

 

 

 

Weighted-average common shares outstanding, basic

 

 49,282 

 

 

 49,079 

Effect of dilutive restricted stock units and stock options

 

 1,666 

 

 

 206 

Weighted-average common shares outstanding, diluted

 

 50,948 

 

 

 49,285 



 

 

 

 

 

Earnings per common share:

 

 

 

 

 

Basic earnings per common share

$

 0.28 

 

$

 0.31 

Diluted earnings per common share

$

 0.27 

 

$

 0.31 



 

 

 

 

 

Anti-dilutive shares not included above

 

 930 

 

 

 1,704 



With regard to diluted EPS and the impact of the Convertible Notes 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 Accounting Standards Codification (“ASC”) 260, Earnings Per Share, the settlement of the principal amount has no impact on diluted EPS. Additionally, ASC 260 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, as defined in the indenture governing the Convertible Notes, is higher than 130% of the Convertible Notes’ conversion rate of 33.0579 (or $39.32). This was not the case during the three months ended March 31, 2017.