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NET INCOME PER SHARE
 6 Months Ended
Jun. 30, 2022
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 2011 Employee Stock Purchase Plan (the “ESPP”), the Notes due 2023, 1.0% convertible senior notes due 2024 (the “Notes due 2024”), Notes due 2025, Notes due 2026, Notes due 2028, and warrant transactions in connection with the offering of the Notes due 2024 (the “2024 Warrants”), 2025 Warrants, 2026 Warrants and the 2028 Warrants. See Note 9, “Debt,” for additional information about the Company’s outstanding notes.
The following table presents the computation of basic and diluted net income per share for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
(In thousands, except per share data)
Numerator:
Net income$76,976 $39,351 $128,797 $71,049 
Convertible Senior Notes interest and financing costs, net662 45 1,304 89 
Adjusted net income$77,638 $39,396 $130,101 $71,138 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding135,196 135,094 134,768 133,209 
Shares used in diluted per share amounts:
Weighted average common shares outstanding135,196 135,094 134,768 133,209 
Effect of dilutive securities:
Employee stock-based awards3,042 4,554 3,399 5,177 
Notes due 2023900 900 900 900 
Notes due 2024— 45 — 1,506 
2024 Warrants
— 43 — 1,268 
Notes due 2025— 557 — 1,137 
2025 Warrants
512 340 460 825 
Notes due 20262,057 — 2,057 — 
Notes due 20282,018 — 2,018 — 
Weighted average common shares outstanding for diluted calculation143,725 141,533 143,602 144,022 
Basic and diluted net income per share
Net income per share, basic$0.57 $0.29 $0.96 $0.53 
Net income per share, diluted$0.54 $0.28 $0.91 $0.49 
For the three and six months ended June 30, 2022, 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 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.
For the three and six months ended June 30, 2022, due to adoption of ASU 2020-06 on January 1, 2022, the Company is no longer utilizing the treasury stock method for earnings per share impact for the Notes due 2025, Notes due 2026 and Notes due 2028. Instead, the Company is applying the if-converted method when reporting the number of potentially dilutive shares of common stock as the Company may at its election, settle its Convertible Senior Notes through payment or delivery, as the case may be, in cash, shares of its common stock or a combination of cash and shares of its common stock. Under this method, diluted earnings per share is determined by assuming that all of the Convertible Senior Notes were converted into shares of the Company’s common stock at the beginning of the reporting period.
Further, the Company under the relevant sections of the indentures, irrevocably may elect to settle principal in cash and any excess in cash or shares of the Company’s common stock for its Notes due 2025, Notes due 2026 and Notes due 2028. If and when the Company makes such election, there will be no adjustment to the net income and the Company will use the average share price for the period to determine the potential number of shares to be issued based upon assumed conversion to be included in the diluted share count.
Diluted earnings per share for the three and six months ended June 30, 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.
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:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
(In thousands)
Employee stock-based awards572 178 598 88 
Notes due 2028— 1,902 — 1,234 
2028 Warrants2,425 3,457 2,735 2,264 
Notes due 2026— 2,255 — 1,468 
2026 Warrants2,471 3,457 2,788 2,264 
Notes due 20251,253 — 1,253 — 
Total6,721 11,249 7,374 7,318