Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan. The Company’s basic and diluted net income per share for the three months ended June 30, 2020 and 2019 were as follows (in thousands, except per share data):

	For the Three Months Ended June 30,
Basic Net Income Per Share		2020		2019
Net income	$	44,588	$	88,923

Weighted average shares – basic		45,010		45,215

Net income per share – basic	$	0.99	$	1.97

	For the Three Months Ended June 30,
Diluted Net Income Per Share		2020		2019
Net income	$	44,588		88,923

Weighted average shares – basic		45,010		45,215
Effect of dilutive securities		539		877
Weighted average shares – diluted		45,549		46,092

Net income per share – diluted	$	0.98	$	1.93

For the three months ended June 30, 2020 and 2019, approximately 249,000 and 117,200 shares of common stock underlying outstanding securities related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive.