Net Income Per Common Share

9 Months Ended

Sep. 30, 2016

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
	2016		2015		2016		2015
	(thousands, except per-share data)
Net income	$	9,981	$	22,007	$	34,159	$	49,854
Weighted average common shares outstanding during the period (for basic calculation)	38,814		39,127		38,827		39,372
Dilutive effect of other potential common shares	306		113		123		101
Weighted average common shares and potential common shares (for diluted calculation)	39,120		39,240		38,950		39,473

Net income per common share - Basic	$	0.26	$	0.56	$	0.88	$	1.27
Net income per common share - Diluted	$	0.26	$	0.56	$	0.88	$	1.26

The computation of the dilutive effect of other potential common shares excludes stock awards representing 0.2 million shares and no shares of common stock, respectively, in the three months ended September 30, 2016 and 2015, and 0.2 million shares and 0.1 million shares of common stock, respectively, in the nine months ended September 30, 2016 and 2015. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.