Net Income Per Common Share (Notes)

6 Months Ended

Jun. 30, 2020

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) and performance stock units (PSUs) 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 the weighted average number of common shares outstanding during the period and other potentially dilutive weighted average common shares. Other potentially dilutive weighted average common shares include the dilutive effect of stock options, RSUs, and PSUs for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share and the amount of compensation expense, if any, for future service that has not yet been recognized 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 June 30						Six Months Ended June 30
	2020		2019		2020		2019
	(thousands, except per-share data)
Net income	$	33,586	$	27,718	$	45,786	$	39,107
Weighted average common shares outstanding during the period (for basic calculation)	39,312		39,087		39,238		38,986
Dilutive effect of other potential common shares	75		112		143		199
Weighted average common shares and potential common shares (for diluted calculation)	39,387		39,199		39,381		39,185

Net income per common share - Basic	$	0.85	$	0.71	$	1.17	$	1.00
Net income per common share - Diluted	$	0.85	$	0.71	$	1.16	$	1.00

The computation of the dilutive effect of other potential common shares excludes stock awards representing 0.1 million and 0.2 million shares of common stock, respectively, in the three months ended June 30, 2020 and 2019, and 0.1 million and 0.2 million of common stock shares, respectively, in the six months ended June 30, 2020 and 2019. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.