3. Net Income Per Share

The computation of basic and diluted net income per share was as follows (in thousands, except per share data):


	Three Months Ended
	September 30,
	2013		2012
Numerator:
Net income	$	34,939	$	6,053

Denominator:
Shares, basic		32,958		32,941
Effect of dilutive share-based awards		2,062		1,073

Shares, diluted		35,020		34,014

Net income per share:
Basic	$	1.06	$	0.18

Diluted	$	1.00	$	0.18

Our basic net income per share amounts for each period presented have been computed using the weighted average number of shares of common stock outstanding. Our diluted net income per share amounts for each period presented include the weighted average effect of potentially dilutive shares. We use the “treasury stock” method to determine the dilutive effect of our stock options, deferred stock units, or DSUs, market stock units, or MSUs, and convertible notes.

Dilutive net income per share amounts do not include the weighted average effect of 503,115 and 3,990,394 share-based awards that were outstanding during the three months ended September 30, 2013 and 2012, respectively. These share-based awards were not included in the computation of diluted net income per share because their effect would have been antidilutive.