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NET INCOME PER SHARE
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHAREBasic 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
September 30,		Nine Months Ended
September 30,
2022202120222021
(In thousands, except per share data)
Numerator:
Net income$114,812 $21,809 $243,609 $92,858 
Convertible senior notes interest and financing costs, net1,623 44 1,966 133 
Adjusted net income$116,435 $21,853 $245,575 $92,991 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding135,633 134,721 135,056 133,719 
Shares used in diluted per share amounts:
Weighted average common shares outstanding135,633 134,721 135,056 133,719 
Effect of dilutive securities:
Employee stock-based awards3,344 4,379 3,433 4,919 
Notes due 2023900 900 900 900 
Notes due 2024— 46 — 1,014 
2024 Warrants
— 44 — 856 
Notes due 20251,253 658 — 976 
2025 Warrants
757 472 594 707 
Notes due 20262,057 — 2,057 — 
Notes due 20282,018 — 2,018 — 
Weighted average common shares outstanding for diluted calculation145,962 141,220 144,058 143,091 
Basic and diluted net income per share
Net income per share, basic$0.85 $0.16 $1.80 $0.69 
Net income per share, diluted$0.80 $0.15 $1.70 $0.65 
For the three and nine months ended September 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 nine months ended September 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 nine months ended September 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
September 30,		Nine Months Ended
September 30,
2022202120222021
(In thousands)
Employee stock-based awards35 76 249 170 
Notes due 2028— 1,333 — 1,255 
2028 Warrants959 2,662 1,933 2,381 
Notes due 2026— 1,629 — 1,509 
2026 Warrants978 2,713 1,970 2,427 
Notes due 2025— — 1,253 — 
Total1,972 8,413 5,405 7,742