7. Earnings Per Share

Basic earnings per share is calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share (“diluted EPS”) is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include common shares related to SOSARs and non-vested stock awards (collectively “stock awards”). Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted EPS in the event they are subject to performance conditions or are antidilutive.

The following stock awards were excluded from the calculation of diluted earnings per share:



	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Stock awards subject to performance conditions		245		226		244		276
Stock awards that were antidilutive		1,738		1,356		1,567		1,312
Total stock awards excluded from diluted earnings per share		1,983		1,582		1,811		1,588

The following table sets forth the computations of basic and diluted earnings per share:



	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Net income	$	19,610	$	7,799	$	132,460	$	6,963
Shares:
Weighted average number of common shares outstanding		28,415		29,063		28,604		29,387
Dilutive stock awards		24		108		92		405
Diluted weighted average number of common shares outstanding		28,439		29,171		28,696		29,792
Basic earnings per share	$	0.69	$	0.27	$	4.63	$	0.24
Diluted earnings per share	$	0.69	$	0.27	$	4.62	$	0.23