Net Income Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Income Per Share

3. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common stockholders by the sum of the weighted average number of common shares outstanding and the weighted average number of dilutive potential common shares. Dilutive potential common shares relate to our share-based compensation arrangements.

The calculation of basic and diluted net income per share is as follows.

Net income per share
	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2024		2023		2024		2023
Net income—basic and diluted	$	151,892	$	156,582	$	456,149	$	460,426
Average common shares outstanding—basic		151,846		158,461		153,199		158,992
Dilutive effect of share-based compensation arrangements (1)		1,227		1,686		1,408		1,877
Adjusted average common shares outstanding—diluted		153,073		160,147		154,607		160,869
Net income per share
Basic	$	1.00	$	0.99	$	2.98	$	2.90
Diluted	$	0.99	$	0.98	$	2.95	$	2.86

(1)The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because their effect would be anti-dilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Shares of common stock equivalents		—		—		5		100