Net Income per Share

9 Months Ended

Sep. 30, 2019

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

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(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.