Net Income per Share

9 Months Ended

Sep. 30, 2021

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 nine months ended September 30, 2021 and 2020 (in thousands, except per share data):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Net income	$	178,916	$	158,623	$	491,108	$	443,684
Denominator:
Shares used for basic net income per share	162,767		162,757		162,967		162,387
Effect of dilutive securities:
Stock options	3		6		19		27
RSUs and DSUs	1,520		2,024		1,515		1,781
Convertible senior notes	2,028		1,732		1,589		795
Warrants related to issuance of convertible senior notes	—		—		—		—
Shares used for diluted net income per share	166,318		166,519		166,090		164,990
Basic net income per share	$	1.10	$	0.97	$	3.01	$	2.73
Diluted net income per share	$	1.08	$	0.95	$	2.96	$	2.69

For the three and nine months ended September 30, 2021 and 2020, 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 nine months ended September 30, 2021 and 2020 are as follows (in thousands):


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2021	2020	2021	2020

Service-based RSUs	149	116	811	751
Market- and performance-based RSUs	1,189	1,383	1,248	1,418
Convertible senior notes	9,898	9,898	9,898	13,929
Warrants related to issuance of convertible senior notes	21,991	21,991	21,991	21,991
Total shares excluded from computation	33,227	33,388	33,948	38,089