Net Income Per Share

9 Months Ended

Sep. 30, 2020

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):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income	$	139,371	$	102,524	$	1,616,900	$	321,514
Denominator:
Weighted average common shares outstanding, basic	78,824		79,332		78,729		79,709
Dilutive effect of potential common stock	339		493		349		688
Total shares, diluted	79,163		79,825		79,078		80,397

Net income per share, basic	$	1.77	$	1.29	$	20.54	$	4.03
Net income per share, diluted	$	1.76	$	1.28	$	20.45	$	4.00

Anti-dilutive potential common shares 1	65		398		66		25

1 Represents RSUs and MSUs not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.