Net Income per Share

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 and six months ended June 30, 2017 and 2016 (in thousands, except per share data):



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
Numerator:
Net income	$	57,772	$	73,635	$	138,702	$	148,493
Denominator:
Shares used for basic net income per share	172,674		175,499		172,916		175,951
Effect of dilutive securities:
Stock options	329		396		344		400
RSUs and DSUs	436		525		1,045		629
Convertible senior notes	—		—		—		—
Warrants related to issuance of convertible senior notes	—		—		—		—
Shares used for diluted net income per share	173,439		176,420		174,305		176,980
Basic net income per share	$	0.33	$	0.42	$	0.80	$	0.84
Diluted net income per share	$	0.33	$	0.42	$	0.80	$	0.84

For the three and six months ended June 30, 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 and six months ended June 30, 2017 and 2016 are as follows (in thousands):



	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2017	2016	2017	2016
Stock options	10	80	6	92
Service-based RSUs	4,134	1,904	3,407	3,283
Performance-based RSUs	1,125	1,280	1,189	704
Convertible senior notes	7,704	7,704	7,704	7,704
Warrants related to issuance of convertible senior notes	7,704	7,704	7,704	7,704
Total shares excluded from computation	20,677	18,672	20,010	19,487