Net Income per Ordinary Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Income per Ordinary Share

Net Income per Ordinary Share

Basic net income per ordinary share is based on the weighted-average number of ordinary shares outstanding. Diluted net income per ordinary share is based on the weighted-average number of ordinary shares outstanding and potentially dilutive ordinary shares outstanding.

Basic and diluted net income per ordinary share were computed as follows (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income	$	215,055	$	146,820	$	369,005	$	320,678
Effect of interest on assumed conversions of Exchangeable Senior Notes, net of tax	1,028		5,912		10,761		19,951
Net income for dilutive net income per ordinary share	$	216,083	$	152,732	$	379,766	$	340,629
Denominator:
Weighted-average ordinary shares used in per share calculations - basic	61,414		63,114		62,275		63,532
Dilutive effect of Exchangeable Senior Notes	1,325		7,560		4,721		8,549
Dilutive effect of employee equity incentive and purchase plans	435		619		515		785
Weighted-average ordinary shares used in per share calculations - diluted	63,174		71,293		67,511		72,866
Net income per ordinary share:
Basic	$	3.50	$	2.33	$	5.93	$	5.05
Diluted	$	3.42	$	2.14	$	5.63	$	4.67

Potentially dilutive ordinary shares from our employee equity incentive and purchase plans are determined by applying the treasury stock method to the assumed vesting of outstanding restricted stock units, or RSUs, and performance-based restricted stock units, or PRSUs, the assumed exercise of share options and the assumed issuance of ordinary shares under our employee stock purchase plan, or ESPP. Potentially dilutive ordinary shares from the Exchangeable Senior Notes are determined by applying the if-converted method to the assumed issuance of ordinary shares upon exchange of the Exchangeable Senior Notes. In August 2023, we made an irrevocable election to fix the settlement method for exchanges of the 2024 Notes to a combination of cash and ordinary shares of the Company with a specified cash amount per $1,000 principal amount of the 2024 Notes of $1,000. As a result, the assumed issuance of ordinary shares upon exchange of the 2024 Notes has only been included in the calculation of diluted net income per ordinary share in the three and nine months ended September 30, 2023 up to the date the irrevocable election was made.

In July 2024, we made an irrevocable election to fix the settlement method for exchanges of the 2026 Notes to a combination of cash and ordinary shares of the Company with a specified cash amount per $1,000 principal amount of the 2026 Notes of $1,000. As a result, the assumed issuance of ordinary shares upon exchange of the 2026 Notes has only been included in the calculation of diluted net income per ordinary share in the three and nine months ended September 30, 2024, up to the date the irrevocable election was made.

For the 2030 Notes, we are required to settle the principal amount in cash and have the option to settle the conversion feature for the amount above the conversion price, or the conversion spread, in cash, ordinary shares or a combination of cash and ordinary shares. The conversion spread will have a dilutive impact on diluted net income per ordinary share when the average market price of our ordinary shares for a given period exceeds the conversion price of the 2030 Notes. For the three and nine months ended September 30, 2024, the 2030 Notes have been excluded from the computation of diluted net income per ordinary share, as the effect would be anti-dilutive since the conversion price of the 2030 Notes exceeded the average market price of our ordinary shares for the three and nine months ended September 30, 2024.

The following table represents the weighted-average ordinary shares that were excluded from the calculation of diluted net income per ordinary share for the periods presented because including them would have an anti-dilutive effect (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Employee equity incentive and purchase plans	4,465	2,501	4,701	3,091