7.	NET INCOME PER SHARE

Per share results have been calculated based on the average number of common shares outstanding. The calculation of basic and diluted net income per share is determined using net income applicable to common stockholders as the numerator and the number of shares included in the denominator as follows (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Basic net income per share:
Net income applicable to common stockholders	$	22,945	$	35,531	$	43,118	$	63,055
Weighted average common shares outstanding		59,902		64,834		60,022		64,936
Basic net income per share	$	0.38	$	0.55	$	0.72	$	0.97

Diluted net income per share:
Net income applicable to common stockholders	$	22,945	$	35,531	$	43,118	$	63,055

Weighted average common shares outstanding		59,902		64,834		60,022		64,936
Dilutive shares from assumed conversion of convertible senior notes		1,831		1,057		1,762		529
Dilutive stock options and restricted stock		1,474		1,224		1,519		1,205
Diluted weighted average common shares outstanding		63,207		67,115		63,303		66,670
Diluted net income per share	$	0.36	$	0.53	$	0.68	$	0.95

Average diluted shares outstanding for the three and six month periods ended June 30, 2016 excludes options to purchase common shares totaling 495 and 622, respectively, because the exercise prices were greater than the average market price of the common shares. The calculation of diluted net income per share for the three and six month periods ended June 30, 2017 and 2016 includes the impact of the Company’s Notes as the average stock price of the Company’s common stock during the period was above the initial conversion price of approximately $11.70 per share.