Stock Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

The Company granted approximately 81 thousand restricted stock units (RSUs) to employees during the six months ended June 30, 2020. Approximately 70 thousand and 11 thousand of these RSUs were granted during the first and second quarter of 2020, respectively, at market prices of $48.47 and $52.70 in those respective quarters. The Company also granted approximately 14 thousand RSUs to members of the board of directors at a market price of $48.47 per award in the first quarter of 2020. Additionally, approximately 40 thousand Relative Total Shareholder Return (“RTSR”) awards were granted to employees at a value of $56.32 per award in the first quarter of 2020. Under the terms of the award agreements, the RSUs granted to employees vest over the anniversary date of the grants through 2024. The RSUs granted to the members of the board of directors vest fully on the first anniversary of the grant date. Pursuant to the terms of the RTSR awards, the Company’s stock performance over a three-year period, ending December 31, 2022, will be compared to a group of peer companies, and the actual number of shares to be issued will be determined based upon the performance of the Company’s stock as compared with that of the peer group. The actual number of shares to be issued ranges from 0 shares (if the Company’s stock performance is in the bottom 25% of the peer group) to 150% of the awards granted (if the Company’s stock performance is in the top 25% of the peer group). The Company's stock-based compensation award vesting is subject to requirements relating to continued employment with the Company through the service or performance periods, and to special vesting provisions in case of a change of control, death, disability or retirement.

We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings per share:



	Three Months Ended June 30,				Six Months Ended June 30, 2020
(in thousands, except per share amounts)	2020		2019		2020		2019
Calculation of net income per share:
Net income	$	29,247	$	13,150	$	42,527	$	27,060
Basic weighted average shares outstanding	49,902		49,848		49,878		49,812
Basic net income per share	$	0.59	$	0.26	$	0.85	$	0.54

Effect of stock-based compensation awards outstanding:
Basic weighted average shares outstanding	49,902		49,848		49,878		49,812
Effect from dilutive shares and options outstanding	180		294		161		306
Diluted weighted average shares outstanding	50,082		50,142		50,039		50,118
Diluted net income per share	$	0.58	$	0.26	$	0.85	$	0.54

There were fewer than 105,000 anti-dilutive awards outstanding during the three and six months ended 2020 and 2019.