Net Income Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

We compute basic and diluted net income per share by dividing our net income by the weighted-average number of common shares outstanding during the period. We used the treasury stock method to determine the number of dilutive shares of common stock resulting from the potential exercise of stock options. The statements of consolidated comprehensive income show the computation of net income per share for each period, including the number of weighted-average shares outstanding.

The following table shows the computation of net income per share for each period:

	Year Ended December 31,
	2019		2018		2017
	(in thousands, except per share data)
Numerator:
Net income	$	94,181	$	75,410	$	129,122
Denominator:
Weighted-average shares used to compute basic net income per share	114,349		115,343		113,527
Dilutive effect of employee stock options	8,217		11,345		10,988
Weighted-average shares used to compute diluted net income per share	122,566		126,688		124,515
Net income per share
Basic	$	0.82	$	0.65	$	1.14
Diluted	$	0.77	$	0.60	$	1.04

As of December 31, 2019, 2018, and 2017 we had 23.6 million, 22.8 million, and 20.5 million stock options outstanding, respectively.

Because including them would have reduced dilution, we excluded from the computation of diluted net income per share, on a weighted-average basis 9.9 million, 5.0 million and 1.1 million stock options outstanding during the years ended December 31, 2019, 2018 and 2017, respectively,