18)

Net Income Per Share

The following is a reconciliation of basic to diluted net income per share:


	Years Ended December 31,
	2018		2017		2016
Numerator:
Net income	$	392,896	$	339,132	$	104,809

Denominator:
Shares used in net income per common share — basic	$	54,406,000		54,137,000		53,472,000
Effect of dilutive securities		586,000		937,000		579,000

Shares used in net income per common share — diluted		54,992,000		55,074,000		54,051,000

Net income per common share:
Basic	$	7.22	$	6.26	$	1.96
Diluted	$	7.14	$	6.16	$	1.94

Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding (using the treasury stock method) if securities containing potentially dilutive common shares (RSUs and SARs) had been converted to such common shares, and if such assumed conversion is dilutive.

In 2018, 2017 and 2016, the potential dilutive effect of 79,500, 404 and 508 weighted average shares, respectively, of RSUs, were excluded from the computation of diluted weighted-average shares outstanding, as the shares would have had an anti-dilutive effect on EPS, and would thus need to be excluded from the computation of diluted weighted-average shares.