Earnings Per Share

6 Months Ended

Jun. 30, 2016

8. Earnings Per Share

Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the effect of restricted stock-based awards, common shares issuable upon exercise of stock options and warrants and shares underlying convertible notes potentially issuable upon conversion. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options outstanding were exercised and all convertible notes have been converted into common stock.

For the Current Quarter, of the total potentially dilutive shares related to restricted stock-based awards, stock options and warrants, approximately 0.1 million were anti-dilutive, as compared to less than 0.2 million shares that were anti-dilutive for the Prior Year Quarter.

For each of the Current Quarter and Prior Year Quarter, none of the performance related restricted stock-based awards issued to the Company’s named executive officers were anti-dilutive.

For the Current Quarter and Current Six Months, warrants issued in connection with the Company’s 1.50% Convertible Notes financing and 2.50% Convertible Notes financing were anti-dilutive and therefore were not included in this calculation. For the Prior Year Quarter and the Prior Year Six Months, warrants issued in connection with the Company’s 1.50% Convertible Notes financing and 2.50% Convertible Notes financing were dilutive and therefore were included in this calculation.

A reconciliation of weighted average shares used in calculating basic and diluted earnings per share follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2016		2015		2016		2015
Basic		49,035		48,243		48,772		48,201
Effect of exercise of stock options		3		82		2		91
Effect of assumed vesting of restricted stock		1,637		1,270		1,727		1,286
Effect of convertible notes subject to conversion		—		—		—		1,174
Diluted		50,675		49,595		50,501		50,752

In accordance with ASC 480, the Company considers its redeemable non-controlling interest in its computation of earnings per share. For each of the Current Quarter, Prior Year Quarter, Current Six Months and Prior Year Six Months, the Company’s redeemable non-controlling interest had no impact on the Company’s earnings per share calculation.

See Note 6 for discussion of hedges related to our convertible notes.