Net Income Per Share

9 Months Ended

Sep. 30, 2017

Net Income per Share

Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes RSU, MSU, stock options and our ESPP.

The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	82,555	$	51,367	$	221,154	$	142,061
Denominator:
Weighted-average common shares outstanding, basic	80,163		79,977		80,086		79,920
Dilutive effect of potential common stock	1,626		1,489		1,671		1,603
Total shares, diluted	81,789		81,466		81,757		81,523

Net income per share, basic	$	1.03	$	0.64	$	2.76	$	1.78
Net income per share, diluted	$	1.01	$	0.63	$	2.71	$	1.74

For the three and nine months ended September 30, 2017 and 2016, potentially dilutive shares excluded from diluted net income per share related to RSUs, MSUs, and ESPP were not material.