Computation of Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020		2019
Numerator:
Net income used for basic earnings per share	$	40,237	$	24,844
Interest expense on Convertible Senior Notes, net of tax	181		791
Net income used for diluted earnings per share, if-converted method	$	40,418	$	25,635

Basic weighted-average common shares outstanding	42,056		39,704
Dilutive potential shares issuable from Convertible Senior Notes	410		1,825
Dilutive potential shares issuable from stock options and unvested RSUs	937		1,378
Diluted weighted-average common shares outstanding, if-converted	43,403		42,907
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	97		149

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.