Earnings Per Share (Notes)

9 Months Ended

Sep. 30, 2020

Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares consist of: i) employee stock purchase plan shares; and ii) contingently issuable time-based and performance-based restricted stock units, along with associated dividend equivalent rights. Unvested performance-based restricted stock units and associated dividend equivalent rights are included in dilutive potential common shares only after the performance criteria have been met. Anti-dilutive stock awards are excluded from the calculation of diluted earnings per common share. For the three months ended September 30, 2020, 173 thousand shares have been excluded from the diluted weighted-average common shares outstanding because they are anti-dilutive.

For the three and nine months ended September 30, 2020, unvested performance-based restricted stock units and related dividend equivalent rights of 302 thousand shares were excluded from the dilutive calculation because the performance goals had not been met, with 265 thousand shares excluded for the three and nine months ended September 30, 2019.

Net income (loss) is the same for both the basic and diluted earnings per share computations. The denominators of the basic and diluted earnings per share computations are as follows (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Weighted-average common shares outstanding—basic	89,509	89,372	89,476	89,346
Dilutive effect of potential common shares	—	222	153	209
Weighted-average common shares outstanding—diluted	89,509	89,594	89,629	89,555