EARNINGS (LOSS) PER SHARE

The Company utilizes the two-class method for the computation of EPS. The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents. The Company’s restricted stock awards qualify as participating securities as each contain non-forfeitable rights to dividends. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.

The following table sets forth the calculation of EPS for the years ended December 31, 2018, 2017, and 2016 (in thousands, except per share amounts):



	Years Ended December 31,
	2018		2017		2016
Weighted average basic common shares outstanding	19,453		20,420		21,161
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock	8		5		9
Weighted average dilutive common shares outstanding	19,461		20,425		21,170
Basic:
Net income (loss)	$	157,772	$	213,442	$	147,065
Less: Earnings (loss) allocated to participating securities	5,416		7,512		5,871
Earnings (loss) available to basic common shares	$	152,356	$	205,930	$	141,194
Basic earnings (loss) per common share	$	7.83	$	10.08	$	6.67
Diluted:
Net income (loss)	$	157,772	$	213,442	$	147,065
Less: Earnings (loss) allocated to participating securities	5,414		7,511		5,869
Earnings (loss) available to diluted common shares	$	152,358	$	205,931	$	141,196
Diluted earnings (loss) per common share	$	7.83	$	10.08	$	6.67