Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share

Basic earnings per share is calculated by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method. This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.

The following table sets forth the computation of basic and diluted net income per share:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net income per share:	(In thousands, except per share amounts)
Numerator:
Net income	$	182,033	$	5,513	$	198,396	$	18,360
Denominator:
Weighted-average shares outstanding - basic	116,444		114,523		115,940		114,080
Effect of potential dilutive common shares	3,098		3,683		3,057		3,460
Weighted-average shares outstanding - diluted	119,542		118,206		118,997		117,540
Basic net income per share	$	1.56	$	0.05	$	1.71	$	0.16
Diluted net income per share	$	1.52	$	0.05	$	1.67	$	0.16

For the three months ended September 30, 2015 and 2014, options to purchase approximately 2.6 million and 3.9 million shares, respectively, and for the nine months ended September 30, 2015 and 2014, options to purchase approximately 2.6 million and 5.7 million shares, respectively, were excluded from the calculation because they were anti-dilutive after considering proceeds from exercise, taxes and related unrecognized stock-based compensation expense.