Earnings Per Share

9 Months Ended

Sep. 30, 2017

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, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	129,590	$	51,517	$	373,412	$	119,930
Shares used in computation:
Weighted-average common shares outstanding	432,404		428,937		431,473		428,514
Basic earnings per share	$	0.30	$	0.12	$	0.87	$	0.28

Diluted earnings per share:
Net income	$	129,590	$	51,517	$	373,412	$	119,930
Shares used in computation:
Weighted-average common shares outstanding	432,404		428,937		431,473		428,514
Employee stock options	14,958		9,452		14,894		9,666
Weighted-average number of shares	447,362		438,389		446,367		438,180
Diluted earnings per share	$	0.29	$	0.12	$	0.84	$	0.27

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, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	(in thousands)
Employee stock options	187	2,559	213	1,942