Net Income per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share Reconciliation [Abstract]

Net Income per Share

Net Income per Share

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, deferred stock units and restricted stock units (“RSUs”) issued by the Company.

The following table sets forth the components used in the computation of basic and diluted net income per common share (in thousands, except per share data):

	For the Three Months Ended March 31,
	2012		2011
Numerator:
Net income	$	43,227	$	50,617
Denominator:
Shares used for basic net income per common share	178,120		186,849
Effect of dilutive securities:
Stock options	2,423		3,353
RSUs and deferred stock units	1,799		1,181
Shares used for diluted net income per common share	182,342		191,383
Basic net income per common share	$	0.24	$	0.27
Diluted net income per common share	$	0.24	$	0.26

Outstanding options to acquire an aggregate of 2.1 million and 1.8 million shares of common stock for the three months ended March 31, 2012 and 2011, respectively, were excluded from the calculation of diluted earnings per share because the exercise prices of these stock options were greater than the average market price of the Company’s common stock during the respective period. As a result, the effect of including these options would be anti-dilutive. Additionally, 1.6 million and 3.2 million shares of common stock issuable in respect of outstanding performance-based RSUs were excluded from the computation of diluted net income per share for the three months ended March 31, 2012 and 2011, respectively, because the performance conditions had not been met as of those dates.

The calculation of assumed proceeds used to determine the diluted weighted average shares outstanding under the treasury stock method in the periods presented was adjusted by tax windfalls and shortfalls associated with all of the Company’s outstanding stock awards. Such windfalls and shortfalls are computed by comparing the tax deductible amount of outstanding stock awards to their grant date fair values and multiplying the results by the applicable statutory tax rate. A positive result creates a windfall, which increases the assumed proceeds, and a negative result creates a shortfall, which reduces the assumed proceeds.