Net Income Per Share

The Company calculates basic net income per share by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. The effect of potential dilutive common shares, including common stock issuable upon exercise of outstanding stock options, is computed using the treasury stock method. The effect of potential dilutive common shares from the conversion of outstanding convertible preferred securities is computed using the as-if converted method at the stated conversion rate. The RSUs granted to members of the Company’s board of directors contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. As a result, the calculation of basic and diluted net income per share excludes net income attributable to the unvested RSUs granted to the Company’s board of directors from the numerator and excludes the impact of the unvested RSUs granted to the Company’s board of directors from the denominator.

The computations of basic and diluted net income per share are as follows:



	Three Months Ended September 30,
	2017			2016
	(in thousands, except per share data)
Numerator:
Net income attributable to common stockholders (numerator for basic net income per share)	$	25,394		$	27,696
Net income allocated to participating securities	(25		)	(36		)
Numerator for basic net income per share	25,369			27,660
Dividends on Series A Preferred Stock, paid and unpaid	1,750			1,750
Dividends on Series B Preferred Stock, paid and unpaid	2,109			2,109
Numerator for diluted net income per share	$	29,228		$	31,519

Denominator:
Denominator for basic net income per share - weighted average outstanding common shares	98,290			96,067
Dilutive effect of stock options	1,515			293
Dilutive effect of contingently issuable shares	54			—
Dilutive effect of Series A Preferred Stock	10,602			10,602
Dilutive effect of Series B Preferred Stock	16,727			16,728
Denominator for diluted net income per share	127,188			123,690
Net income per share attributable to common stockholders - basic	$	0.26		$	0.29
Net income per share attributable to common stockholders - diluted	$	0.23		$	0.26

For the three months ended September 30, 2017, $1.8 million and $2.1 million in cumulative unpaid dividends to holders of the Series A Preferred Stock and Series B Preferred Stock, respectively, were not declared or accrued as a result of all cash dividends being suspended in connection with the amendments described in Note 4, but such amounts were deducted to arrive at net income attributable to common stockholders. For the three months ended September 30, 2017, 1.7 million unvested non-performance-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 0.1 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied.

For the three months ended September 30, 2016, options to purchase 2.8 million shares of common stock were not included in the computation of diluted net income per share, as the effect would be anti-dilutive. For the three months ended September 30, 2016, 1.4 million unvested non-performance based RSUs were not included in the computation of basic net income per share and excluded from the computation of diluted net income per share, as the effect would be anti-dilutive, and 1.7 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied.



	Nine Months Ended September 30,
	2017			2016
	(in thousands, except per share data)
Numerator:
Net income attributable to common stockholders (numerator for basic net income per share)	$	80,402		$	75,352
Net income allocated to participating securities	(79		)	(97		)
Numerator for basic net income per share	80,323			75,255
Dividends on Series A Preferred Stock, paid and unpaid	5,250			5,250
Dividends on Series B Preferred Stock, paid and unpaid	6,327			6,327
Numerator for diluted net income per share	$	91,900		$	86,832

Denominator:
Denominator for basic net income per share - weighted average outstanding common shares	97,716			95,890
Dilutive effect of stock options	1,407			188
Dilutive effect of contingently issuable shares	387			—
Dilutive effect of Series A Preferred Stock	10,602			10,602
Dilutive effect of Series B Preferred Stock	16,727			16,728
Denominator for diluted net income per share	126,839			123,408

Net income per share attributable to common stockholders - basic	$	0.82		$	0.79
Net income per share attributable to common stockholders - diluted	$	0.72		$	0.70

For the nine months ended September 30, 2017, $3.5 million and $4.2 million in cumulative unpaid dividends to holders of the Series A Preferred Stock and Series B Preferred Stock, respectively, were not declared or accrued as a result of all cash dividends being suspended in connection with the amendments described in Note 4, but such amounts were deducted to arrive at net income attributable to common stockholders. For the nine months ended September 30, 2017, options to purchase 0.1 million shares of common stock were not included in the computation of diluted net income per share, as the effect would be anti-dilutive. For the nine months ended September 30, 2017, 1.6 million unvested non-performance-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 0.4 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied.

For the nine months ended September 30, 2016, options to purchase 4.0 million shares of common stock were not included in the computation of diluted net income per share, as the effect would be anti-dilutive. For the nine months ended September 30, 2016, 1.4 million unvested non-performance based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 1.5 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied.