COMMON STOCK AND EARNINGS PER SHARE

Earnings per Share

The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):



	Three Months Ending March 31,
	2018		2017
Numerator:
Earnings from continuing operations - basic	$	15,682	$	9,796
Gain from stock warrants revaluation, net of tax	—		(1,539		)
Earnings from continuing operations - diluted	$	15,682	$	8,257

Denominator:
Weighted-average shares outstanding for basic earnings per share	58,840		59,133
Common equivalent shares:
Effect of stock-based compensation awards and warrants	718		5,816
Weighted-average shares outstanding assuming dilution	59,558		64,949
Basic earnings per share from continuing operations	$	0.27	$	0.17
Diluted earnings per share from continuing operations	$	0.26	$	0.13

The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note B), if such warrants have a anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding.

The underlying warrants recorded as a liability as of March 31, 2018 and 2017 would have resulted in 14.8 million and 12.3 million additional shares of the Company's common stock, respectively, if the warrants were settled by tendering cash. The warrants recorded in stockholders' equity as of March 31, 2018, would have resulted in 8.1 million additional shares of the Company's common stock, if the Company's stock price exceeded $41.35 and the warrants were settled in shares.