Net Income per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income per Share

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 RSUs, MSUs 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): 

	Year Ended December 31,
	2019		2018		2017
Numerator:
Net income	$	442,776	$	400,235	$	231,418
Denominator:
Weighted average common shares outstanding, basic	79,424		80,064		80,085
Dilutive effect of potential common stock	676		1,293		1,747
Total shares, diluted	80,100		81,357		81,832
Net income per share, basic	$	5.57	$	5.00	$	2.89
Net income per share, diluted	$	5.53	$	4.92	$	2.83

For the year ended December 31, 2019, 2018 and 2017, potentially anti-dilutive shares excluded from diluted net income per share related to RSUs, MSUs and ESPP were not material.