Computation of Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Earnings Per Share, Basic and Diluted

The following table reconciles net income and the weighted-average shares used in computing basic and diluted earnings per share (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Net income used for basic earnings per share	$	16,181	$	10,822	$	42,295	$	41,704
Interest expense on Convertible Senior Notes, net of tax	180		791		1,669		4,152
Net income used for diluted earnings per share, if-converted method	$	16,361	$	11,613	$	43,964	$	45,856

Basic weighted-average common shares outstanding	41,642		39,290		40,520		37,490
Potentially dilutive shares issuable from Convertible Senior Notes	410		1,825		1,282		3,193
Potentially dilutive shares issuable from stock options and unvested RSUs	1,154		1,774		1,249		1,784
Diluted weighted-average common shares outstanding, if-converted	43,206		42,889		43,051		42,467
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	223		—		198		161

Potentially dilutive shares excluded from the calculation above represent stock options when the combined exercise price and unrecognized stock-based compensation are greater than the average market price for the Company’s common stock because their effect is anti-dilutive.