Net Income per Share

6 Months Ended

Jun. 30, 2022

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. For the three and six months ended June 30, 2022, the dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method and the dilutive effect of the convertible securities is reflected in diluted earnings per share by application of the if-converted method. For the three and six months ended June 30, 2021, 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, 2022 and 2021 (in thousands, except per share data):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income	$	119,537	$	156,497	$	238,700	$	312,192
Denominator:
Shares used for basic net income per share	160,038		163,074		160,266		163,067
Effect of dilutive securities:
Stock options	50		48		25		27
RSUs and DSUs	565		1,359		943		1,513
Convertible senior notes	1,057		1,782		1,440		1,369
Warrants related to issuance of convertible senior notes	—		—		—		—
Shares used for diluted net income per share	161,710		166,263		162,674		165,976
Basic net income per share	$	0.75	$	0.96	$	1.49	$	1.91
Diluted net income per share	$	0.74	$	0.94	$	1.47	$	1.88

For the three and six months ended June 30, 2022 and 2021, 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, 2022 and 2021 are as follows (in thousands):


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2022	2021	2022	2021

Service-based RSUs	2,228	214	2,231	1,142
Market- and performance-based RSUs	1,022	1,217	1,038	1,278
Convertible senior notes	—	9,898	—	9,898
Warrants related to issuance of convertible senior notes	21,991	21,991	21,991	21,991
Total shares excluded from computation	25,241	33,320	25,260	34,309