Net Income per Share

12 Months Ended

Dec. 31, 2018

Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes RSUs, MSUs, stock options and our ESPP.

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts):



	Year Ended December 31,
	2018		2017		2016
Numerator:
Net income	$	400,235	$	231,418	$	189,682
Denominator:
Weighted average common shares outstanding, basic	80,064		80,085		79,856
Dilutive effect of potential common stock	1,293		1,747		1,628
Total shares, diluted	81,357		81,832		81,484
Net income per share, basic	$	5.00	$	2.89	$	2.38
Net income per share, diluted	$	4.92	$	2.83	$	2.33

For the year ended December 31, 2018, 2017 and 2016, potentially anti-dilutive shares excluded from diluted net income per share related to RSUs, MSUs, stock options and ESPP were not material.