Net Income per Share (Tables)

3 Months Ended

Mar. 31, 2019

Summary of denominators for the computation of basic and diluted net income (loss) per share

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



	Three Months Ended March 31,
	2019		2018
	(In millions, except net income per share)
Numerator:
Net income	$	198	$	107
Denominator:
Shares outstanding at the beginning of the period	62.1		59.3
Weighted-average number of shares issued:
Exchange of 1.625% Convertible Notes	—		0.5
Denominator for basic net income per share	62.1		59.8
Effect of dilutive securities:
1.125% Warrants ⁽¹⁾	3.5		4.4
1.625% Convertible Notes	—		0.7
Stock-based compensation	0.6		0.3
Denominator for diluted net income per share	66.2		65.2

Net income per share: ⁽²⁾
Basic	$	3.19	$	1.79
Diluted	$	2.99	$	1.64

Potentially dilutive common shares excluded from calculations: ⁽¹⁾
Stock-based compensation	0.1		0.4

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(1)

For more information and definitions regarding the 1.125% Warrants, including partial termination transactions, refer to Note 9, “Stockholders' Equity.” The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. Certain potentially dilutive common shares issuable were not included in the computation of diluted net income per share because to do so would have been anti-dilutive.


(2)	Source data for calculations in thousands.