Note 3 - Net Income Per Share

12 Months Ended

Dec. 31, 2018

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and the weighted-average number of dilutive potential common shares. Dilutive potential common shares relate to our share-based compensation arrangements and our outstanding convertible senior notes, if any. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income.

The calculation of basic and diluted net income per share was as follows:



	Year Ended December 31,
	2018		2017			2016
(In thousands, except per-share amounts)
Net income—basic	$	606,011	$	121,088		$	308,253
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	—		(215		)	5,816
Net income —diluted	$	606,011	$	120,873		$	314,069

Average common shares outstanding—basic	214,267		215,321			211,789
Dilutive effect of Convertible Senior Notes due 2017	—		323			207
Dilutive effect of Convertible Senior Notes due 2019	—		457			14,263
Dilutive effect of stock-based compensation arrangements (2)	4,286		4,305			2,999
Adjusted average common shares outstanding—diluted	218,553		220,406			229,258

Net income per share:

Basic	$	2.83	$	0.56		$	1.46

Diluted	$	2.77	$	0.55		$	1.37

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(1)

As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. Included in the year ended December 31, 2017 is a benefit related to our adjustment of estimated accrued expense to actual amounts, resulting from the January 2017 settlement of our obligations on the remaining Convertible Senior Notes due 2019.


(2)	The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive:



	Year Ended December 31,
(In thousands)	2018	2017	2016
Shares of common stock equivalents	337	353	1,042