10. EARNINGS PER SHARE

Basic earnings per share, or EPS, is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income on an if-converted basis, with respect to the 3.25% Notes and the 5.75% Notes, by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of any outstanding dilutive securities. The reconciliations of net income to net income on an if-converted basis and basic and diluted EPS are as follows (in thousands):


	Three Months Ended
	March 31,
	2014		2013
Basic EPS:
Net income	$	43,203	$	2,555
Weighted average shares outstanding - basic		33,153		29,933
Net income - basic	$	1.30	$	0.09

Diluted EPS:
Net income	$	43,203	$	2,555
Interest and amortization on convertible debt, net of tax effect:
5.75% Notes		576		-
3.25% Notes		1,379		-
Net income on an if-converted basis	$	45,158	$	2,555

Weighted average shares outstanding - basic		33,153		29,933
Effect of dilutive convertible debt:
5.75% Notes		4,081		-
3.25% Notes		5,756		-
Effect of dilutive stock-based compensation awards		261		277
Total potential shares outstanding		43,251		30,210

Net income - diluted	$	1.04	$	0.08

Excluded from the computations of diluted EPS for the three months ended March 31, 2013 were stock-based compensation awards totaling 0.4 million shares because the exercise prices or the grant-date fair value, as applicable, of the corresponding awards were greater than the average market price of the Company’s common stock during the respective periods. Also, for the three months ended March 31, 2013, 6.3 million shares related to the effect of the 5.75% Notes were excluded from the computation of diluted EPS as the inclusion of these shares would have been antidilutive.