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NET INCOME PER SHARE
 12 Months Ended
Dec. 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 ESPP, the Notes due 2023, Notes due 2025, Notes due 2026, Notes due 2028 and the 2025 Warrants.
The following table presents the computation of basic and diluted net income per share for the periods presented:
Years Ended December 31,
202320222021
(In thousands, except per share data)
Numerator:
Net income$438,936 $397,362 $145,449 
Convertible senior notes interest and financing costs, net of tax2,573 2,629 177 
Adjusted net income$441,509 $399,991 $145,626 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding136,376 135,349 134,025 
Shares used in diluted per share amounts:
Weighted average common shares outstanding used for basic calculation136,376 135,349 134,025 
Effect of dilutive securities:
Employee stock-based awards1,782 3,407 4,918 
Notes due 2023638 900 900 
Notes due 2024— — 768 
2024 Warrants
— — 647 
Notes due 2025— — 929 
2025 Warrants
419 659 691 
Notes due 20262,057 2,057 — 
Notes due 20282,018 2,018 — 
Weighted average common shares outstanding for diluted calculation143,290 144,390 142,878 
Basic and diluted net income per share
Net income per share, basic$3.22 $2.94 $1.09 
Net income per share, diluted$3.08 $2.77 $1.02 
Diluted earnings per share for the year ended December 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, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2023, 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 the 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 year ended December 31, 2021 includes the dilutive effect of stock options, RSUs, PSUs, ESPP, the Notes due 2023, Notes due 2024, the 2024 Warrants, Notes due 2025 and the 2025 Warrants. Certain common stock issuable under stock options, RSUs, PSUs, the Notes due 2026, the 2026 Warrants, 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:
Years Ended December 31,
202320222021
(In thousands)
Employee stock-based awards1,113 135 32 
Notes due 2028— — 1,082 
2028 Warrants2,981 1,547 2,184 
Notes due 2026— — 1,328 
2026 Warrants3,038 1,577 2,225 
Notes due 20251,253 1,253 — 
Total8,385 4,512 6,851