Earnings per Share (“EPS”)

Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested RSAs, although legally issued and outstanding, are

not

considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, stock appreciation rights (“SARs”), RSAs, and RSUs using the treasury stock method.

The following table provides share information used in the calculation of the Company's basic and diluted earnings per share:

	Years Ended December 31,
	2018		2017		2016
Shares used in the calculation of basic earnings per share		14,442		14,575		14,682
Effect of dilutive securities:
Stock options, SARs, RSAs and RSUs		247		493		434
Diluted shares used in the calculation of earnings per share		14,689		15,068		15,116

Stock options to purchase

0.7

million shares,

0.5

million shares, and

0.4

million shares for the years ended

December 31, 2018,

2017,

and

2016,

respectively, were excluded from the computation of diluted EPS as their effect would have been anti-dilutive. The anti-dilutive restricted shares for the years

2018,

2017

and

2016

were insignificant.

December

31,

2018,

2017,

and

2016

a total of

thousand,

0.1

million, and

0.1

million shares of issued and outstanding unvested RSAs were excluded from the basic earnings per share.

May 24, 2018,

the Company entered into an accelerated stock repurchase agreement with Morgan Stanley & Co. LLC (“Morgan Stanley”) pursuant to a Fixed Dollar Accelerated Share Repurchase Transaction (“ASR Agreement") to purchase

$30.0

million of shares of its common stock. Pursuant to the terms of the ASR Agreement, the Company delivered

$30.0

million cash to Morgan Stanley and received an initial delivery of

0.4

million shares of the Company’s common stock on

May 24, 2018

based on a closing market price of

$41.41

and the applicable contractual discount. This was approximately

60%

of the then estimated total number of shares expected to be repurchased under the ASR Agreement.

July 16, 2018,

the Company settled the approximately

$12.0

million remaining under the ASR Agreement, which was recorded as an equity forward sale contract and was included in additional paid-in-capital in stockholders' equity in the consolidated balance sheet as it met the criteria for equity accounting. Pursuant to the terms of the ASR Agreement, the final number of shares and the average purchase price was determined at the end of the applicable purchase period, which was

July 16, 2018.

Based on the volume-weighted average price since the effective date of the ASR Agreement less the applicable contractual discount, Morgan Stanley delivered

0.4

million additional shares to the Company on

July 19, 2018.

In total,

0.8

million shares were repurchased under the ASR Agreement at an average repurchase price of

$37.18

per share. These shares are held by the Company as authorized but unissued shares. All shares were repurchased in accordance with the publicly announced program, and the Company will

not

make any further purchases under the program. The initial and final delivery of shares resulted in an immediate reduction of the number of outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net income per share on the effective date of the ASR Agreement.

February 26, 2016,

the Company entered into an accelerated stock repurchase agreement with Morgan Stanley pursuant to a Fixed Dollar Accelerated Share Repurchase Transaction (“ASR Agreement") to purchase

$25.0

million of shares of its common stock. Pursuant to the terms of the ASR Agreement, the Company paid Morgan Stanley

$25.0

million in cash and received an initial delivery of

0.4

million shares of the Company’s common stock on

February

29,

2016

based on a closing market price of

$46.40

per share and the applicable contractual discount.

August 26, 2016,

the Company settled the approximately

$7.5

million remaining under the ASR Agreement, which was recorded as an equity forward sale contract and was included in additional paid-in capital in stockholders' equity in the consolidated balance sheet as it met the criteria for equity accounting. Pursuant to the terms of the ASR Agreement, the final number of shares and the average purchase price was determined at the end of the applicable purchase period, which was

August 26, 2016.

Based on the volume-weighted average price since the effective date of the ASR Agreement less the applicable contractual discount, Morgan Stanley delivered

0.1

million additional shares to the Company on

August 31, 2016.

In total,

0.5

million shares were repurchased under the ASR Agreement at an average repurchase price of

$47.08

per share. These shares are held by the Company as authorized but unissued shares. The initial and final delivery of shares resulted in immediate reductions of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net income per share.