Earnings per Common Share

3 Months Ended

Mar. 31, 2016

Note 3. Earnings per Common Share

Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

Diluted earnings per common share reflects the potential dilution that could occur if convertible securities, or other contracts to issue common stock, were exercised or converted into common stock. Dilutive securities are included in the calculation of diluted earnings per common share using the treasury stock method and the if-converted method in accordance with Accounting Standards Codification ("ASC") Topic 260, “Earnings per Share.” Dilutive securities include convertible notes, options granted pursuant to the Company’s stock option plans and outstanding restricted stock units and performance share units granted to employees and non-employee directors (see Note 10).

Weighted-average common shares outstanding—diluted is the same as weighted-average common shares outstanding—basic in periods when a net loss is reported or in periods when diluted earnings per share is higher than basic earnings per share.

The following table summarizes the computation of basic and diluted earnings per share (in thousands, except per share data):



	Three Months Ended March 31,
	2016		2015
Earnings per common share—basic
Net income	$	38,390	$	35,819
Weighted-average common shares outstanding—basic	93,952		77,753
Basic earnings per common share	$	0.41	$	0.46
Earnings per common share—diluted
Net income	$	38,390	$	35,819
Add: Interest on convertible debt	—		1,246
Net income including assumed conversions	$	38,390	$	37,065
Weighted-average common shares outstanding—basic	93,952		77,753
Convertible notes weighted-average shares outstanding	—		15,000
Options and restricted stock	1,472		1,143
Weighted-average common shares outstanding—diluted	95,424		93,896
Dilutive earnings per common share	$	0.40	$	0.39

For the three months ended March 31, 2016 and 2015, securities outstanding totaling approximately 413,000 and 705,000 shares, respectively, comprised of stock options and restricted stock units, have been excluded from the calculation of earnings per common share—diluted as their effect would be antidilutive.