Net Income per Share The following table sets forth the calculation of net income per share: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2019 | | 2018 | | 2019 | | 2018 | | (In millions, except net income per share) | Numerator: | | | | | | | | Net income | $ | 175 |
| | $ | 197 |
| | $ | 569 |
| | $ | 506 |
| Denominator: | | | | | | | | Shares outstanding at the beginning of the period | 62.2 |
| | 61.3 |
| | 62.1 |
| | 59.3 |
| Weighted-average number of shares issued: | | | | | | | | Exchange of 1.625% Convertible Notes | — |
| | — |
| | — |
| | 1.3 |
| Stock-based compensation | — |
| | — |
| | 0.1 |
| | 0.2 |
| Denominator for net income per share, basic | 62.2 |
| | 61.3 |
| | 62.2 |
| | 60.8 |
| Effect of dilutive securities: | | | | | | | | 1.125% Warrants (1) | 0.8 |
| | 5.6 |
| | 1.8 |
| | 5.0 |
| 1.625% Convertible Notes | — |
| | 0.6 |
| | — |
| | 0.5 |
| Stock-based compensation | 0.6 |
| | 0.4 |
| | 0.6 |
| | 0.3 |
| Denominator for net income per share, diluted | 63.6 |
| | 67.9 |
| | 64.6 |
| | 66.6 |
| | | | | | | | | Net income per share: (2) | | | | | | | | Basic | $ | 2.81 |
| | $ | 3.22 |
| | $ | 9.15 |
| | $ | 8.32 |
| Diluted | $ | 2.75 |
| | $ | 2.90 |
| | $ | 8.80 |
| | $ | 7.60 |
|
| | (1) | For more information and definitions regarding the 1.125% Warrants, including partial termination transactions, refer to Note 9, “Stockholders' Equity.” The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. |
(2) Source data for calculations in thousands.
|