Net Income Per Share

12 Months Ended

Dec. 31, 2016

Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of restricted stock awards, and issuances of ESPP, which are reflected in diluted net income per share by application of the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the estimated tax benefit that would be recorded in additional paid-in capital upon exercise are assumed to be used to repurchase shares.

Net income per share for the years ended December 31, 2016, 2015 and 2014 was as follows:



	Year Ended December 31,
	2016		2015		2014
	(In thousands, except per share data)
Numerator:
Net income	$	75,851	$	48,584	$	8,788
Denominator:
Weighted average common shares - basic	32,758		33,161		35,771
Potentially dilutive common share equivalent	970		627		674
Weighted average common shares - dilutive	33,728		33,788		36,445

Basic net income per share	$	2.32	$	1.47	$	0.25
Diluted net income per share	$	2.25	$	1.44	$	0.24

Anti-dilutive employee stock-based awards, excluded	258		1,807		2,617