Net Income Per Share

9 Months Ended

Sep. 30, 2021

NET INCOME PER SHARE

Basic net income per share is presented in conformity with the two-class method required for participating securities, which include restricted stock units ("RSUs").

Under the two-class method, net income is reduced for distributed and undistributed dividends earned in the current period. The remaining earnings are then allocated to Common Stock and the participating securities. The Company calculates the effects of participating securities on diluted earnings per share ("EPS") using both the “if-converted or treasury stock” and "two-class" methods and discloses the method which results in a more dilutive effect. The effects of stock appreciation rights and convertible notes on diluted EPS are calculated using the treasury stock method unless the effects are anti-dilutive to EPS.

For the 2036 Convertible Senior Notes, the Company’s current intent was to settle conversions using cash for the principal amount of convertible senior notes converted, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. Therefore, the dilutive effect of the convertible senior notes was limited to the conversion premium. There were no anti-dilutive shares within the periods presented.

The following table presents the calculation of diluted net income per share available to common stockholders:


	Three months ended September 30, 2021		Three months ended September 30, 2020		Nine months ended September 30, 2021		Nine months ended September 30, 2020
















Net income available to the Company's common stockholders - Basic	$	42,133	$	22,223	$	159,470	$	93,750
Plus (less): effect of participating securities	334		440		1,735		1,895
Net income available to common stockholders	42,467		22,663		161,205		95,645
Less: effect of participating securities	(334)		(440)		(1,735)		(1,895)
Net income available to the Company's common stockholders - Diluted	$	42,133	$	22,223	$	159,470	$	93,750

Shares:
Weighted-average shares used to compute basic net income per share	50,249,162		39,306,263		46,301,147		39,154,788
Adjustment to reflect conversion of convertible notes	—		3,835,950		—		3,451,385


Adjustment to reflect stock appreciation right conversions	314,289		482,127		438,664		501,816
Weighted-average shares used to compute diluted net income per share	50,563,451		43,624,340		46,739,811		43,107,989

Net income per share available to common stockholders - Diluted


Diluted net income	$	0.83	$	0.51	$	3.41	$	2.17