Net Income per Share

3 Months Ended

Mar. 31, 2013

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,
	2013		2012
Numerator:
Net income	$	71,487	$	43,227
Denominator:
Shares used for basic net income per common share	177,899		178,120
Effect of dilutive securities:
Stock options	1,776		2,423
RSUs and deferred stock units	1,887		1,799
Shares used for diluted net income per common share	181,562		182,342
Basic net income per common share	$	0.40	$	0.24
Diluted net income per common share	$	0.39	$	0.24

For the three months ended March 31, 2013 and 2012, certain potential outstanding stock options and service-based RSUs were excluded from the computation of diluted earnings per share because the effect of including these options and RSUs would be 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 potentially outstanding shares excluded from the computation of diluted earnings per share is as follows (in thousands):

	For the Three Months Ended March 31,
	2013	2012
Options	2,148	2,681
Service-based RSUs	495	1,024
Performance-based RSUs	1,148	2,129
Total shares excluded from computation	3,791	5,834

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.