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NET INCOME PER SHARE
 12 Months Ended
Dec. 31, 2024
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.
The following table presents the computation of basic and diluted net income per share for the periods presented:
Years Ended December 31,
202420232022
(In thousands, except per share data)
Numerator:
Net income$102,658 $438,936 $397,362 
Convertible senior notes interest and financing costs, net of tax2,486 2,573 2,629 
Adjusted net income$105,144 $441,509 $399,991 
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding135,167 136,376 135,349 
Shares used in diluted per share amounts:
Weighted average common shares outstanding used for basic calculation135,167 136,376 135,349 
Effect of dilutive securities:
Employee stock-based awards474 1,782 3,407 
Notes due 2023— 638 900 
Notes due 2025288 — — 
2025 Warrants
— 419 659 
Notes due 20262,057 2,057 2,057 
Notes due 20282,018 2,018 2,018 
Weighted average common shares outstanding for diluted calculation140,004 143,290 144,390 
Basic and diluted net income per share
Net income per share, basic$0.76 $3.22 $2.94 
Net income per share, diluted$0.75 $3.08 $2.77 
Diluted earnings per share for the year ended December 31, 2024 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, Notes due 2025, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2026 and Notes due 2028. Potentially dilutive common shares for the year ended December 31, 2023 and 2022 include stock options, RSUs, PSUs, ESPP, Notes due 2023, Notes due 2025, Notes due 2026, Notes due 2028 and the 2025 Warrants. 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 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.
Holders of the Notes due 2025 may now convert their notes at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of March 1, 2025. These conversions will be settled in a combination settlement method with the principal value settled in cash and the remaining value in shares of the Company’s common stock, as a result there was no adjustment to the net income for the year ended December 31, 2024, and the Company used the average share price for the period to determine the potential number of shares that will be issued and included in the diluted share count for the year ended December 31, 2024.
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,
202420232022
(In thousands)
Employee stock-based awards1,359 1,113 135 
Notes due 2025— 1,253 1,253 
2026 Warrants5,673 3,038 1,577 
2028 Warrants5,566 2,981 1,547 
Total12,598 8,385 4,512