Earnings Per Share (EPS)

12 Months Ended

Dec. 31, 2016

EARNINGS PER SHARE (EPS)

Basic EPS is computed based on the weighted average number of common stocks outstanding during the period. Diluted EPS is computed based on those shares used in the basic EPS computation, plus potentially dilutive shares issuable under our equity-based compensation plans using the treasury stock method. Shares that are potentially anti-dilutive are excluded.

In 2014, we had convertible preferred stock which were participating securities. Basic EPS was computed using the two-class method that earnings were allocated between common stock and participating preferred stock. Diluted EPS is computed using the more dilutive of the if-converted method and two-class method. The convertible preferred stock was converted into common stock as a result of our IPO.

The following table presents the computation of our basic and diluted EPS attributable to our common stock:



	Year Ended December 31,
(In thousands, except per share data)	2016		2015		2014
Numerator (basic)
Net income	$	61,406	$	31,695	$	15,497
Less net income allocated to participating securities	—		—		(2,224		)
Net income attributable to common stock	$	61,406	$	31,695	$	13,273
Denominator (basic)
Weighted average shares of common stock outstanding	70,160		70,228		56,161
Basic EPS	$	0.88	$	0.45	$	0.24

Numerator (diluted)
Net income	$	61,406	$	31,695	$	15,497
Less net income allocated to participating securities	—		—		(2,114		)
Net income attributable to common stock	$	61,406	$	31,695	$	13,383
Denominator (diluted)
Weighted average shares of common stock	70,160		70,228		56,161
Dilutive effect of stock options and restricted stock units	1,812		2,390		3,406
Weighted average shares of common stock outstanding	71,972		72,618		59,567
Diluted EPS	$	0.85	$	0.44	$	0.22

Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect	871		1,004		526