Net Income per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share Reconciliation [Abstract]

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 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.

The components used in the computation of basic and diluted net income per share for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands, except per share data):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	128,816	$	137,840	$	225,922	$	271,216
Denominator:
Shares used for basic net income per share	152,064		160,038		153,850		160,266
Effect of dilutive securities:
Stock options	14		50		7		25
Stock awards	1,376		565		938		943
Convertible senior notes	—		1,057		—		1,440

Shares used for diluted net income per share	153,454		161,710		154,795		162,674
Basic net income per share	$	0.85	$	0.86	$	1.47	$	1.69
Diluted net income per share	$	0.84	$	0.85	$	1.46	$	1.67

For the three and six months ended June 30, 2023 and 2022, certain potential outstanding shares from service-based RSUs 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 market- and performance-based RSUs were excluded from the computation of diluted net income per share because the underlying market and 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, 2023 and 2022 were as follows (in thousands):


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2023	2022	2023	2022

Service-based RSUs	2,159	2,228	5,013	2,231
Market- and performance-based RSUs	1,270	1,022	1,425	1,038

Warrants related to issuance of convertible senior notes	21,991	21,991	21,991	21,991
Total shares excluded from computation	25,420	25,241	28,429	25,260