Earnings Per Share

9 Months Ended

Sep. 30, 2016

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:



	Three Months Ended				Nine Months Ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	51,517	$	29,432	$	119,930	$	79,463
Shares used in computation:
Weighted-average common shares outstanding	428,937		426,869		428,514		425,289
Basic earnings per share	$	0.12	$	0.07	$	0.28	$	0.19

Diluted earnings per share:
Net income	$	51,517	$	29,432	$	119,930	$	79,463
Shares used in computation:
Weighted-average common shares outstanding	428,937		426,869		428,514		425,289
Employee stock options	9,452		10,737		9,666		10,560
Weighted-average number of shares	438,389		437,606		438,180		435,849
Diluted earnings per share	$	0.12	$	0.07	$	0.27	$	0.18

Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation:



	Three Months Ended		Nine Months Ended
	September 30, 2016	September 30, 2015	September 30, 2016	September 30, 2015
	(in thousands)
Employee stock options	2,559	130	1,942	668