Earnings Per Share

9 Months Ended

Sep. 30, 2016

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock awards. There are no differences in the numerators of our computations of basic and diluted earnings per share for any period presented.

The computation of basic and diluted earnings per share is shown below (in thousands, except per share amounts).



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Net income	$	18,920	$	32,076	$	57,318	$	87,066
Weighted average common shares outstanding	72,058		71,890		72,043		71,967
Dilutive effect of stock-based awards	348		588		321		579
Shares used in computing diluted earnings per share	72,406		72,478		72,364		72,546
Basic earnings per share	$	0.26	$	0.45	$	0.80	$	1.21
Diluted earnings per share	$	0.26	$	0.44	$	0.79	$	1.20

There were no options to purchase shares of common stock that were outstanding during the periods indicated above that were excluded from the computation of diluted earnings per share because the option purchase price was greater than the average market price of the common shares during the period. Performance awards are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied.