NOTE 11

Earnings per share

Basic earnings per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding. Diluted earnings per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under equity-based compensation plans unless the inclusion of such shares would have an anti-dilutive impact.

The total shares outstanding on May 31, 2017, the date of Separation, was 71.6 million. The total number of shares outstanding at that date is being utilized for the calculation of both basic and diluted earnings per share for the three and nine months ended September 30, 2016, as no equity-based awards were outstanding prior to the Separation date.

The computations of our basic and diluted earnings per share are set forth below (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	20,988	$	51,845	$	72,685	$	127,564
Basic weighted-average shares outstanding		71,699		71,588		71,693		71,588
Effect of dilutive share-based compensation awards		68		—		70		—
Diluted weighted-average shares outstanding		71,767		71,588		71,763		71,588
Earnings per share, basic	$	0.29	$	0.72	$	1.01	$	1.78
Earnings per share, diluted	$	0.29	$	0.72	$	1.01	$	1.78