Net Income per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share Reconciliation [Abstract]

Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, restricted stock units ("RSUs"), deferred stock units ("DSUs"), convertible senior notes and warrants issued by the Company. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the components used in the computation of basic and diluted net income per share for the three months ended March 31, 2017 and 2016 (in thousands, except per share data):



	For the Three Months Ended March 31,
	2017		2016
Numerator:
Net income	$	80,930	$	74,858
Denominator:
Shares used for basic net income per share	173,158		176,403
Effect of dilutive securities:
Stock options	360		403
RSUs and DSUs	1,653		733
Convertible senior notes	—		—
Warrants related to issuance of convertible senior notes	—		—
Shares used for diluted net income per share	175,171		177,539
Basic net income per share	$	0.47	$	0.42
Diluted net income per share	$	0.46	$	0.42

For the three months ended March 31, 2017 and 2016, certain potential outstanding shares from stock options, service-based RSUs, convertible notes and warrants were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain performance-based RSUs were excluded from the computation of diluted net income per share because the underlying performance conditions for such RSUs had not been met as of these dates. The number of potentially outstanding shares excluded from the computation of diluted net income per share for the three months ended March 31, 2017 and 2016 are as follows (in thousands):



	For the Three Months Ended March 31,
	2017	2016
Stock options	3	104
Service-based RSUs	2,681	4,662
Performance-based RSUs	1,253	1,348
Convertible senior notes	7,704	7,704
Warrants related to issuance of convertible senior notes	7,704	7,704
Total shares excluded from computation	19,345	21,522