Earnings Per Share

9 Months Ended

Sep. 30, 2021

Basic earnings per share is calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted-average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise or settlement of stock awards and shares issuable under the employee stock purchase plan (calculated using the treasury stock method) during the period they were outstanding.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share information):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Numerator:


Net income	$	51,787	$	98,227	$	204,601	$	392,355
Denominator:
Denominator for basic earnings per share - weighted-average shares outstanding	124,515		123,255		123,896		123,835
Effect of dilutive employee stock awards	1,806		2,608		2,244		2,572

Denominator for diluted earnings per share - weighted-average shares outstanding	126,321		125,863		126,140		126,407




Basic earnings per share	$	0.42	$	0.80	$	1.65	$	3.17




Diluted earnings per share	$	0.41	$	0.78	$	1.62	$	3.10

For the three and nine months ended September 30, 2021, anti-dilutive stock-based awards excluded from the calculations of diluted earnings per share were 3.3 million shares and 1.7 million shares, respectively. For the three and nine months ended September 30, 2020, stock-based awards excluded from the calculations of diluted earnings per share were not material.