Net Income per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share Reconciliation [Abstract]

Net Income per ShareBasic 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, 2020 and 2019 (in thousands, except per share data):


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:
Net income	$	161,915	$	113,915	$	285,061	$	221,045
Denominator:
Shares used for basic net income per share	162,413		163,407		162,203		163,322
Effect of dilutive securities:
Stock options	62		92		37		71
RSUs and DSUs	1,640		1,520		1,659		1,510
Convertible senior notes	653		—		327		—
Warrants related to issuance of convertible senior notes	—		—		—		—
Shares used for diluted net income per share	164,768		165,019		164,226		164,903
Basic net income per share	$	1.00	$	0.70	$	1.76	$	1.35
Diluted net income per share	$	0.98	$	0.69	$	1.74	$	1.34

For the three and six months ended June 30, 2020 and 2019, certain potential outstanding common shares issuable in respect of 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 common shares excluded from the computation of diluted net income per share for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands):


	For the Three Months Ended June 30,			For the Six Months Ended June 30,
	2020	2019	2020	2019

Service-based RSUs	115	174	1,069	1,370
Market-and performance-based RSUs	1,383	1,484	1,435	1,484
Convertible senior notes	9,898	12,093	15,945	12,093
Warrants related to issuance of convertible senior notes	21,991	12,093	21,991	12,093
Total shares excluded from computation	33,387	25,844	40,440	27,040