Earnings Per Share

12 Months Ended

Dec. 31, 2016

9. Earnings Per Share

Earnings per share is computed in accordance with ASC 260, Earnings per Share. Basic earnings per share is computed on the basis of weighted average outstanding common shares. Diluted earnings per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities.

The following table reconciles the average share amounts used to compute both basic and diluted earnings per share (in thousands):


	Years Ended December 31,
	2016		2015		2014
Weighted average shares outstanding:
Basic weighted average shares outstanding		117,533		117,465		114,798
Add: Dilutive effect of stock options		1,314		1,454		1,973

Diluted weighted average shares outstanding		118,847		118,919		116,771

For the years ended December 31, 2016, 2015, and 2014, respectively, 6.1 million, 3.7 million, and 2.9 million options to purchase shares and contingently issuable shares, were excluded from the diluted net income per share computation as their effect would be anti-dilutive.

Common stock outstanding as of December 31, 2016 and 2015 was 117,336,797 and 119,033,770, respectively.