Net Income Per Common Share

3 Months Ended

Mar. 31, 2014

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period. Other potentially dilutive weighted average common shares include the dilutive effect of stock options, restricted stock units (RSUs), and performance stock units (PSUs) for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation expense, if any, for future service that has not yet been recognized, and the amount of tax benefits that would be recorded in additional paid-in capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted net income per common share:



	Three Months Ended March 31
	2014		2013
	(thousands, except per-share data)
Net income	$	5,565	$	80,836
Weighted average common shares outstanding during the period (for basic calculation)	39,372		37,569
Dilutive effect of other potential common shares	80		—
Weighted average common shares and potential common shares (for diluted calculation)	39,452		37,569

Net income per common share - Basic	$	0.14	$	2.15
Net income per common share - Diluted	$	0.14	$	2.15

The computation of the dilutive effect of other potential common shares excludes stock awards representing 0.2 million shares and 0.1 million shares of common stock, respectively, in the three months ended March 31, 2014 and 2013. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.

- Definition

The entire disclosure for earnings per share.

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