Net Income Per Share

3 Months Ended

Mar. 31, 2016

3. Net income per share

Basic earnings per share for the Company’s common stock is computed by dividing, net income available to common shareholders attributable to common stock for the period by the weighted average number of common shares outstanding during the period.

Diluted earnings per share for the Company’s common stock assume the issuance of shares as a consequence of a convertible debt securities conversion event (refer to Note 9 to these interim condensed consolidated financial statements) and the effects of assumed share settlement of long term retention plans for earnings per share calculations.

Net income per share of common stock is as follows for the three-month periods ended March 31, 2016 and 2015:


	Three Months Ended March 31,
	2016		2015
	(In thousands)
	Basic	Diluted	Basic	Diluted
Net income per common share	$ 0.68	$ 0.68	$ 0.04	$ 0.04

Numerator:
Net income	$ 30,247	$ 30,247	$ 1,721	$ 1,721

Denominator:
Weighted average of common stock outstanding for Basic earnings per share	44,156,961		44,154,796
Adjusted weighted average of common stock outstanding for Diluted earnings per share		44,156,961		44,154,796

For the three-month periods ended March 31, 2016 and 2015 there was no impact on the calculation of diluted earnings per share as a consequence of the consideration of the Convertible Notes and the Long term retention plan referred to above calculated using the “if converted” method and the “treasury stock method” respectively (Please refer to note 9 of these interim condensed consolidated financial statements).

The denominator for diluted net income per share for the three-month periods ended March 31, 2016 and 2015 does not include any effect from the capped call issued in connection with the notes because it would be antidilutive. In the event of conversion of any or all of the Notes, the shares that would be delivered to the Company under the Note hedges are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes.