Earnings Per Share (“EPS”)

Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are

not

considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, SARs, RSAs, and RSUs using the treasury stock method.

The following table provides share information used in the calculation of the Company's basic and diluted earnings per share (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Shares used in the calculation of basic earnings per share		14,237		14,579		14,524		14,572
Effect of dilutive securities:
Stock options, SARs, RSUs and RSAs		140		536		296		493
Diluted shares used in the calculation of earnings per share		14,377		15,115		14,820		15,065

Stock options of

0.9

million and

0.5

million shares were outstanding for the

three

-month periods ended

September 30, 2018

and

2017,

respectively, and were

not

included in the computation of diluted EPS because the awards’ impact on EPS would have been anti-dilutive. Stock options of

0.6

million shares were outstanding for the

nine

-month periods ended

September 30, 2018

and

2017

and were

not

included in the computation of diluted EPS because the awards’ impact on EPS would have been anti-dilutive.

May 24, 2018,

the Company entered into an accelerated stock repurchase agreement with Morgan Stanley & Co. LLC (“Morgan Stanley”) pursuant to a Fixed Dollar Accelerated Share Repurchase Transaction (“ASR Agreement") to purchase

$30.0

million of shares of its common stock. Pursuant to the terms of the ASR Agreement, the Company delivered

$30.0

million cash to Morgan Stanley and received an initial delivery of

0.4

million shares of the Company’s common stock on

May 24, 2018

based on a closing market price of

$41.41

and the applicable contractual discount. This was approximately

60%

of the then estimated total number of shares expected to be repurchased under the ASR Agreement.

July 16, 2018,

the Company settled the approximately

$12.0

million remaining under the ASR Agreement, which was recorded as an equity forward sale contract and was included in additional paid-in-capital in stockholders' equity in the condensed consolidated balance sheet as it met the criteria for equity accounting. Pursuant to the terms of the ASR Agreement, the final number of shares and the average purchase price was determined at the end of the applicable purchase period, which was

July 16, 2018.

Based on the volume-weighted average price since the effective date of the ASR Agreement less the applicable contractual discount, Morgan Stanley delivered

0.4

million additional shares to the Company on

July 19, 2016.

The Company will

not

make further purchases under the program. In total,

0.8

million shares were repurchased under the ASR Agreement at an average repurchase price of

$37.18

per share. These shares are held by the Company as authorized but unissued shares. All shares were repurchased in accordance with the publicly announced program, and the Company will

not

make any further purchases under the program. The initial and final delivery of shares resulted in an immediate reduction of the number of outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net income per share on the effective date of the ASR Agreement.