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NET INCOME PER SHARE
 3 Months Ended
Mar. 31, 2023
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 (“ESPP”), the Notes due 2023, Notes due 2025, Notes due 2026, Notes due 2028, 2025 Warrants, 2026 Warrants and the 2028 Warrants. Refer to Note 8. “Debt,” for additional information about the Company’s outstanding debt.
The following table presents the computation of basic and diluted net income per share for the periods presented:
Three Months Ended
March 31,
20232022
(In thousands, except per share data)
Numerator:
Net income$146,873 $51,821 
Convertible senior notes interest and financing costs, net1,604 1,559 
Adjusted net income$148,477 $53,380 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding136,689 134,327 
Shares used in diluted per share amounts:
Weighted average common shares outstanding used for basic calculation136,689 134,327 
Effect of dilutive securities:
Employee stock-based awards2,434 3,661 
Notes due 2023900 900 
Notes due 20251,253 1,253 
2025 Warrants
635 401 
Notes due 20262,057 2,057 
Notes due 20282,018 2,018 
Weighted average common shares outstanding for diluted calculation145,986 144,617 
Basic and diluted net income per share
Net income per share, basic$1.07 $0.39 
Net income per share, diluted$1.02 $0.37 
Diluted earnings per share for the three months ended March 31, 2023 and 2022 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, the 2025 Warrants, the 2026 Warrants, the 2028 Warrants and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2025, Notes due 2026 and Notes due 2028. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income per share.
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.
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
March 31,
20232022
(In thousands)
Employee stock-based awards781 359 
2028 Warrants1,690 3,093 
2026 Warrants1,722 3,152 
Total4,193 6,604