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Earnings per share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings per share Earnings per share
Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and the Convertible Notes are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive.
Potentially dilutive common shares issuable upon vesting of stock options, RSUs and PSUs are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of the Convertible Notes are determined using the if-converted method. Since we have committed to settle the principal amount of the Convertible Notes in cash upon conversion only, the number of shares for the conversion spread will be included as a dilutive common stock equivalent.
A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts):
Year Ended December 31,
 202420232022
Numerator
Net income$444,091 $281,594 $202,129 
Denominator
Weighted average common shares outstanding for basic earnings per share
126,827 131,927 136,844 
Dilutive potential common stock outstanding
Stock options
1,827 1,824 2,265 
RSUs, PSUs and ESPP
696 388 422 
Convertible Notes74 58 1,077 
Weighted average common shares outstanding for diluted earnings per share
129,424 134,197 140,608 
Earnings per share
Basic$3.50 $2.13 $1.48 
Diluted$3.43 $2.10 $1.44 
Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions):
Year Ended December 31,
 202420232022
Anti-dilutive securities(1)
26.1 27.8 20.7 
(1)    The anti-dilutive securities include outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and Convertible Notes.