Net Income per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income per Share

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, RSUs, 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 years ended December 31, 2021, 2020 and 2019 (in thousands, except per share data):

	2021		2020		2019
Numerator:
Net income	$	651,642	$	557,054	$	478,035
Denominator:
Shares used for basic net income per share	162,665		162,490		162,706
Effect of dilutive securities:
Stock options	21		31		68
RSUs and DSUs	1,518		1,819		1,799
Convertible senior notes	1,600		873		—
Warrants related to issuance of convertible senior notes	—		—		—
Shares used for diluted net income per share	165,804		165,213		164,573
Basic net income per share	$	4.01	$	3.43	$	2.94
Diluted net income per share	$	3.93	$	3.37	$	2.90

For the years ended December 31, 2021, 2020 and 2019, 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 years ended December 31, 2021, 2020 and 2019 (in thousands):

	2021	2020	2019
Service-based RSUs	776	591	763
Market-and performance-based RSUs	1,199	1,409	1,349
Convertible senior notes	9,898	12,922	21,991
Warrants related to issuance of convertible senior notes	21,991	21,991	21,991
Total shares excluded from computation	33,864	36,913	46,094