NET INCOME PER SHARE

The computation of basic and diluted net income per share was as follows (in thousands, except per share amounts):



	Three Months Ended March 31,
	2018		2017
Numerator:
Net income	$	115,857	$	16,700
Net income allocated to participating securities	—		(57		)
Net income allocable to common stock for basic net income per share	115,857		16,643
Adjustment to net income allocated to participating securities	—		3
Net income allocable to common stock for diluted net income per share	$	115,857	$	16,646
Denominator:
Weighted-average shares of common stock outstanding used in computing basic net income per share	296,421		290,870
Dilutive securities:
Outstanding stock options, unvested RSUs and ESPP contributions	17,270		18,665
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share	313,691		309,535

Net income per share, basic	$	0.39	$	0.06
Net income per share, diluted	$	0.37	$	0.05

The two-year warrants to purchase an aggregate of 1,000,000 shares of our common stock issued in January 2014 (“2014 Warrants”) were participating securities. The warrant holders did not have a contractual obligation to share in our losses. The 2014 Warrants were fully exercised in September 2017. For a description of the 2014 Warrants, see “Note 7. Common Stock and Warrants” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 26, 2018.

Potentially dilutive shares of common stock not included in the computation of diluted net income per share because to do so would be anti-dilutive were as follows (in thousands):



	Three Months Ended March 31,
	2018	2017
Outstanding stock options, unvested RSUs and ESPP contributions	1,907	1,396
Secured Convertible Notes due 2018 (“Deerfield Notes”)	—	33,890
Total potentially dilutive shares	1,907	35,286

The Deerfield Notes were repaid in June 2017.