Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common shareholders by the sum of the weighted-average number of common shares outstanding and the weighted-average number of dilutive potential common shares. Dilutive potential common shares relate to our share-based compensation arrangements and our outstanding convertible senior notes.

The calculation of basic and diluted net income per share was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2017		2016		2017			2016
Net income—basic	$	65,142	$	82,803	$	114,272		$	247,164
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	—		848		(215		)	5,151
Net income—diluted	$	65,142	$	83,651	$	114,057		$	252,315

Average common shares outstanding—basic	215,279		214,387		215,194			210,858
Dilutive effect of Convertible Senior Notes due 2017 (2)	16		178		398			71
Dilutive effect of Convertible Senior Notes due 2019	—		8,274		611			16,897
Dilutive effect of share-based compensation arrangements (2)	4,096		3,129		4,027			2,846
Adjusted average common shares outstanding—diluted	219,391		225,968		220,230			230,672

Net income per share:

Basic	$	0.30	$	0.39	$	0.53		$	1.17

Diluted	$	0.30	$	0.37	$	0.52		$	1.09

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(1)

As applicable, includes coupon interest, amortization of discount and fees, and other changes in income that would result from the assumed conversion. Included in the nine months ended September 30, 2017 is a benefit related to our adjustment of estimated accrued expense to actual amounts, resulting from the January 2017 settlement of our obligations on the remaining Convertible Senior Notes due 2019.


(2)	The following number of shares of our common stock equivalents issued under our share-based compensation arrangements and our convertible debt were not included in the calculation of diluted net income per share because they were anti-dilutive:



	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2017	2016	2017	2016
Shares of common stock equivalents	676	1,045	440	1,045
Shares of Convertible Senior Notes due 2017	—	—	—	1,902