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NET INCOME PER SHARE
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares include Stock Options, RSUs, PSUs, shares to be purchased under the Company’s ESPP, the Notes due 2023, Notes due 2024, Notes due 2025, Notes due 2026, Notes due 2028, 2024 Warrants, 2025 Warrants, 2026 Warrants, and the 2028 Warrants. See Note 13. “Debt,” of the notes to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the treasury stock method for stock options, RSUs, PSUs, the Notes due 2024, the Notes due 2025, the Notes due 2026, the Notes due 2028, the 2024 Warrants, the 2025 Warrants, the 2026 Warrants and the 2028 Warrants. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income per share.
The following table presents the computation of basic and diluted net income per share for the periods presented.
Years Ended December 31,
202120202019
(In thousands, except per share data)
Numerator:
Net income$145,449 $133,995 $161,148 
Notes due 2023 interest and financing costs, net177 177 1,088 
Adjusted net income$145,626 $134,172 $162,236 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding134,025 125,561 116,713 
Shares used in diluted per share amounts:
Weighted average common shares outstanding134,025 125,561 116,713 
Effect of dilutive securities:
Employee stock-based awards4,918 6,997 8,964 
Notes due 2023900 900 5,516 
Notes due 2024768 4,449 451 
2024 Warrants
647 4,011 — 
Notes due 2025929 — — 
2025 Warrants
691 — — 
Weighted average common shares outstanding for diluted calculation142,878 141,918 131,644 
Basic and diluted net income per share
Net income per share, basic$1.09 $1.07 $1.38 
Net income per share, diluted$1.02 $0.95 $1.23 
The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income per share attributable to common stockholders because their effect would have been antidilutive.
Years Ended December 31,
202120202019
(In thousands)
Employee stock-based awards32 43 185 
Notes due 20281,082 — — 
2028 Warrants2,184 — — 
Notes due 20261,328 — — 
2026 Warrants2,225 — — 
Notes due 2025— 197 
2025 Warrants
— 1,254 — 
2024 Warrants
— — 300 
Total6,851 1,494 485 
Diluted earnings per share for the year ended December 31, 2021 includes the dilutive effect of stock options, RSUs, PSUs, shares to be purchased under the ESPP, the Notes due 2023, the Notes due 2024, the 2024 Warrants, the Notes due 2025 and the 2025 Warrants. Certain common stock issuable under stock options, RSUs, PSUs, the Notes due 2026, the 2026 Warrants, the Notes due 2028 and the 2028 Warrants have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive.
Diluted earnings per share for the year ended December 31, 2020 includes the dilutive effect of stock options, RSUs, PSUs, shares to be purchased under the ESPP, the Notes due 2023, the Notes due 2024 and the 2024 Warrants. Certain common stock issuable under stock options, RSUs, PSUs, Notes due 2025 and the 2025 Warrants have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive.
Diluted earnings per share for the year ended December 31, 2019 includes the dilutive effect of stock options, RSUs, PSUs, shares to be purchased under the ESPP, the Notes due 2023 and Notes due 2024. Certain common stock issuable under stock options, RSUs, PSUs and warrants issued in conjunction with the Notes due 2024 have been omitted from the diluted net income per share calculation because including such shares would have been antidilutive.
Since the Company has the intent and ability to settle the aggregate principal amount of the Notes due 2025, Notes due 2026 and Notes due 2028 in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. In order to compute the dilutive effect, the number of shares included in the denominator of diluted net income per share is determined by dividing the conversion spread value of the “in-the-money” Notes due 2025, Notes due 2026 and Notes due 2028 by the Company’s average share price during the period and including the resulting share amount in the diluted net income per share denominator. The conversion spread will have a dilutive impact on net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $81.54, $307.47 and $284.87 per share for the Notes due 2025, Notes due 2026 and Notes due 2028, respectively.