8.	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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Basic net income per share:
Net income applicable to common stockholders	$	18,947	$	33,378	$	62,066	$	96,433
Weighted average common shares outstanding		58,994		63,604		59,675		64,488
Basic net income per share	$	0.32	$	0.52	$	1.04	$	1.50

Diluted net income per share:
Net income applicable to common stockholders	$	18,947	$	33,378	$	62,066	$	96,433

Weighted average common shares outstanding		58,994		63,604		59,675		64,488
Dilutive shares from assumed conversion of convertible senior notes		1,701		1,172		1,713		743
Dilutive stock options and restricted stock		1,540		1,256		1,527		1,222
Diluted weighted average common shares outstanding		62,235		66,032		62,915		66,453
Diluted net income per share	$	0.30	$	0.51	$	0.99	$	1.45

Average diluted shares outstanding for the three and nine month periods ended September 30, 2016 exclude options to purchase common shares totaling 426 and 556, 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 nine month periods ended September 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.