Note 2 - Net Income per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

2. Net Income per Share

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Net Income per Basic and Diluted Share:	2012		2011		2012		2011
	(In thousands, except per share amounts)
Numerator
Net income used to compute net income per basic share	$	73,502	$	69,986	$	113,686	$	114,531
Add back interest expense for convertible notes, net of estimated tax of $3,000 and $0.7 million for the three months ended June 30, 2012 and 2011, respectively and $18,000 and $1.4 million for the six months ended June 30, 2012 and 2011, respectively (see Note 9)		6		1,275		33		2,549
Income used to compute net income per diluted share	$	73,508	$	71,261	$	113,719	$	117,080
Denominator
Total weighted-average shares used to compute net income per basic share		139,683		139,650		139,681		139,645
Restricted stock outstanding		100		26		84		27
Effect of dilutive stock options		15		14		15		13
Assumed conversion of Series 2012 Notes		2,252		-		2,189		-
Assumed conversion of 2012 Notes		-		19,743		-		19,743
Assumed conversion of February 2015 Notes		163		26,627		921		26,627
Weighted-average shares used to compute net income per diluted share		142,213		186,060		142,890		186,055
Net income per basic share	$	0.53	$	0.50	$	0.81	$	0.82
Net income per diluted share	$	0.52	$	0.38	$	0.80	$	0.63

We compute net income per basic share using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted stock shares that are subject to repurchase.

We compute net income per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of net income per diluted share include shares that may be issued under our stock options and restricted stock awards, our 2.875% Convertible Senior Notes due February 15, 2015 (February 2015 Notes), our 2.875% Series 2012 Convertible Notes due February 15, 2015 (Series 2012 Notes), our 3.75% Senior Convertible Notes due May 1, 2015 (May 2015 Notes) and, in 2011, our 2.00% Convertible Senior Notes due February 15, 2012 (2012 Notes), on a weighted average basis for the period that the notes were outstanding, including the effect of adding back interest expense, net of tax, and the underlying shares using the if-converted method. Our 2012 Notes were fully retired as of June 30, 2011, and $179.0 million aggregate principal amount of our February 2015 Notes was exchanged for our Series 2012 Notes in the first quarter of 2012.

The Series 2012 Notes are net share settled, with the principal amount settled in cash and the excess settled in our common stock. The weighted-average share adjustment related to our Series 2012 Notes includes the shares issuable in respect of such excess.

We excluded 22.1 million and 20.0 million shares of potential dilution for the May 2015 Notes and 18.8 million and 17.0 million shares of potential dilution for our warrants for the six months ended June 30, 2012 and 2011, respectively, because the conversion price of the Notes and exercise price of the warrants exceeded the average market price of our common stock and thus, for the periods presented, no stock was issuable upon conversion. These securities could be dilutive in future periods. In addition, we excluded 22.1 million and 20.0 million shares for our purchased call options for the six months ended June 30, 2012 and 2011, respectively because they will always be anti-dilutive and therefore, will have no effect on diluted net income per share. For further information related to our convertible notes, see Note 9.

We excluded 0.2 million shares underlying outstanding stock options, calculated on a weighted average, from our net income per diluted share calculations for each of the three and six months ended June 30, 2012 and June 30, 2011, because their effect was anti-dilutive.