Note

– Net Income per Common Share

Basic net income per share is computed based on the weighted-average number of common shares outstanding. Diluted net income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options, restricted stock units and restricted stock awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance stock units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied.

The table below sets forth the computation of basic and diluted net income per share:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except share and per share amounts)	2018		2017		2018		2017
Net income	$	18,314	$	12,086	$	36,365	$	24,286

Basic - weighted-average shares outstanding:		26,972,990		26,541,978		26,925,673		26,554,262
Effect of dilutive securities:
Employee stock options and other		301,892		107,174		306,542		155,955
Diluted - weighted-average shares outstanding:		27,274,882		26,649,152		27,232,215		26,710,217
Net income per share:
Basic	$	0.68	$	0.46	$	1.35	$	0.91
Diluted	$	0.67	$	0.45	$	1.34	$	0.91