Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock units were settled for common shares during the period.

The weighted average number of common shares used to compute basic and diluted net income per share for the quarters and years to ended June 30, 2020 and 2019 were as follows (shares in thousands):

	For the Quarter Ended June 30,				For the Year to Date Ended June 30,
	2020		2019 ⁽¹⁾		2020		2019
Basic common shares outstanding		69,094		70,105		69,467		69,972
Common stock equivalents		1,806		-		1,883		1,810
Diluted common shares outstanding		70,900		70,105		71,350		71,782

(1)

Due to the fact that we reported a loss from continuing operations for the quarter ended June 30, 2019, potential common stock equivalents are excluded from diluted common shares outstanding. Per FASB ASC Topic 260 – Earnings Per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the quarter ended June 30, 2019.

For the quarter ended June 30, 2020 and the years to date ended June 30, 2020 and 2019, certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. The anti-dilutive options that were excluded from our computations of diluted earnings per share were 0.6 million for the quarter ended June 30, 2020 and 0.6 million and 0.7 million shares for the years to date ended June 30, 2020 and 2019, respectively.