11. Earnings Per Share

The following is a reconciliation of the basic and diluted earnings per share computation:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	7,976	$	7,955	$	26,961	$	23,678


	(shares in thousands)				(shares in thousands)
Shares of common stock and common stock equivalents:
Weighted average common shares used in basic computation		134,709		134,046		134,552		134,541
Dilutive effect of common stock equivalents		1,224		1,144		1,216		1,042

Weighted average common shares used in dilutive computation		135,933		135,190		135,768		135,583

Basic earnings per share	$	0.06	$	0.06	$	0.20	$	0.17
Diluted earnings per share	$	0.06	$	0.06	$	0.20	$	0.17

In the table above, unvested share-based awards that have non-forfeitable rights to dividends or dividend equivalents are treated as a separate class of securities in calculating earnings per share under the two-class method. The impact of applying this methodology was a reduction in basic earnings per share of $0.01 for the nine months ended September 30, 2016.

Diluted earnings per share is calculated under both the treasury stock and two-class method and reflects the reduction in earnings per share assuming options or other contracts to issue common stock were exercised or converted into common stock (if dilutive). The calculation that results in the most dilutive earnings per share amount for the common stock is reported in the Company’s consolidated financial statements. The Company excluded 337,682 and 516,630 common stock equivalents from its computation of diluted earnings per share for the three months ended September 30, 2017 and 2016, respectively, and 1,745,469 and 909,118 common stock equivalents from its computation of diluted earnings per share for the nine months ended September 30, 2017 and 2016, respectively, as they were determined to be anti-dilutive.

As further discussed in Note 12, the Company adopted ASU 2016-09 prospectively effective January 1, 2017 which had the effect of reducing basic earnings per share by $0.01 for the nine months ended September 30, 2017.