NET INCOME PER SHARE (Notes)

12 Months Ended

Dec. 31, 2021

Net income per common share is presented for both Basic EPS and Diluted EPS. Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and common shares equivalents outstanding during the period.

The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of our common stock for the relevant periods, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to our employees that vest based on performance conditions, market conditions, or a combination of performance and market conditions.

The following table sets forth (in thousands) common shares considered anti-dilutive securities at December 31, 2021, 2020, and 2019:



	December 31, 2021	December 31, 2020	December 31, 2019
Options	—	4	565
Non-vested restricted stock units	941	737	2,642
Anti-dilutive potential common shares	941	741	3,207

The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding at December 31, 2021, 2020, and 2019:


	2021	2020	2019
Weighted common shares outstanding - basic	45,101	43,822	42,649
Net effect of common stock equivalents	1,202	1,056	846
Weighted common shares outstanding - diluted	46,303	44,878	43,495

On June 15, 2015, we issued $125.0 million aggregate principal amount of our 2.00% convertible senior notes due 2020 (the “Notes”) in an offering conducted in accordance with Rule 144A under the Securities Act of 1933. The Notes were convertible into cash, shares of our common stock, or a combination of cash and shares of common stock, at our election, based on an initial conversion rate, subject to adjustment. In connection with the offering of the Notes, we entered into a capped call transaction with a third party (the “Capped Call”). We used the treasury stock method in computing the dilutive impact of the Notes. The Notes were convertible into shares but our stock price was less than the conversion price at December 31, 2019, and therefore, the Notes were excluded from diluted income per share. The Capped Call was not reflected in diluted net income per share as it will always be anti-dilutive. The Notes were fully paid on June 15, 2020 when they came due.