Net Income Per Common Share

9 Months Ended

Sep. 30, 2015

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Weighted average common shares outstanding for the basic net income per common share calculation includes certain vested restricted stock units (RSUs) as there are no conditions under which those shares will not be issued. 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, 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 September 30				Nine Months Ended September 30
	2015		2014		2015		2014
	(thousands, except per-share data)
Net income	$	22,007	$	32,285	$	49,854	$	64,268
Weighted average common shares outstanding during the period (for basic calculation)	39,127		39,423		39,372		39,407
Dilutive effect of other potential common shares	113		58		101		52
Weighted average common shares and potential common shares (for diluted calculation)	39,240		39,481		39,473		39,459

Net income per common share - Basic	$	0.56	$	0.82	$	1.27	$	1.63
Net income per common share - Diluted	$	0.56	$	0.82	$	1.26	$	1.63

The computation of the dilutive effect of other potential common shares excludes stock awards representing no shares and 0.1 million shares of common stock, respectively, in the three months ended September 30, 2015 and 2014, and 0.1 million shares and 0.3 million shares of common stock, respectively, in the nine months ended September 30, 2015 and 2014. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.