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NET INCOME PER SHARE
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHAREBasic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares include stock options, RSUs, PSUs, ESPP, the Notes due 2023, 1.0% convertible senior notes due 2024 (the “Notes due 2024”), Notes due 2025, Notes due 2026, Notes due 2028, and warrant transactions in connection with the offering of the Notes due 2024 (the “2024 Warrants”), 2025 Warrants, 2026 Warrants and the 2028 Warrants. Refer to Note 12. “Debt,” for additional information about the Company’s outstanding notes.
The following table presents the computation of basic and diluted net income per share for the periods presented:
Years Ended December 31,
202220212020
(In thousands, except per share data)
Numerator:
Net income$397,362 $145,449 $133,995 
Convertible senior notes interest and financing costs, net2,629 177 177 
Adjusted net income$399,991 $145,626 $134,172 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding135,349 134,025 125,561 
Shares used in diluted per share amounts:
Weighted average common shares outstanding135,349 134,025 125,561 
Effect of dilutive securities:
Employee stock-based awards3,407 4,918 6,997 
Notes due 2023900 900 900 
Notes due 2024— 768 4,449 
2024 Warrants
— 647 4,011 
Notes due 2025— 929 — 
2025 Warrants
659 691 — 
Notes due 20262,057 — — 
Notes due 20282,018 — — 
Weighted average common shares outstanding for diluted calculation144,390 142,878 141,918 
Basic and diluted net income per share
Net income per share, basic$2.94 $1.09 $1.07 
Net income per share, diluted$2.77 $1.02 $0.95 
Diluted earnings per share for the year ended December 31, 2022 includes the dilutive effect of stock options, RSUs, PSUs, ESPP, the Notes due 2023, the 2025 Warrants, the Notes due 2026 and the Notes due 2028. Certain common stock issuable under stock options, RSUs, PSUs, the Notes due 2025, the 2026 Warrants, and the 2028 Warrants have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive.
For the year ended December 31, 2022, due to adoption of ASU 2020-06 on January 1, 2022, the Company is no longer utilizing the treasury stock method for earnings per share impact for the Notes due 2025, Notes due 2026 and Notes due 2028. Instead, the Company is applying the if-converted method when reporting the number of potentially dilutive shares of common stock as the Company may at its election, settle its Convertible Senior Notes through payment or delivery, as the case may be, in cash, shares of its common stock or a combination of cash and shares of its common stock. Under this method, diluted earnings per share is determined by assuming that all of the Convertible Senior Notes were converted into shares of the Company’s common stock at the beginning of the reporting period.
Further, the Company under the relevant sections of the indentures, irrevocably may elect to settle principal in cash and any excess in cash or shares of the Company’s common stock for its Notes due 2025, Notes due 2026 and Notes due 2028. If and when the Company makes such election, there will be no adjustment to the net income
and the Company will use the average share price for the period to determine the potential number of shares to be issued based upon assumed conversion to be included in the diluted share count.
Diluted earnings per share for the year ended December 31, 2021 includes the dilutive effect of stock options, RSUs, PSUs, ESPP, the Notes due 2023, the Notes due 2024, the 2024 Warrants, the Notes due 2025 and the 2025 Warrants. Certain common stock issuable under stock options, RSUs, PSUs, the Notes due 2026, the 2026 Warrants, the Notes due 2028 and the 2028 Warrants have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive.
Diluted earnings per share for the year ended December 31, 2020 includes the dilutive effect of stock options, RSUs, PSUs, ESPP, the Notes due 2023, the Notes due 2024, and the 2024 Warrants. Certain common stock issuable under stock options, RSUs, PSUs, Notes due 2025 and the 2025 Warrants have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive.
The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income per share attributable to common stockholders because their effect would have been antidilutive:
Years Ended December 31,
202220212020
(In thousands)
Employee stock-based awards135 32 43 
Notes due 20251,253 — 197 
2025 Warrants
— — 1,254 
Notes due 2028— 1,082 — 
2028 Warrants1,547 2,184 — 
Notes due 2026— 1,328 — 
2026 Warrants1,577 2,225 — 
Total4,512 6,851 1,494