Note 3 - Net Income Per Share

9 Months Ended

Sep. 30, 2020

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 stockholders 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.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2020		2019		2020		2019
Net income —basic and diluted	$	135,103	$	173,438	$	245,613	$	511,125

Average common shares outstanding—basic (1)	193,176		203,107		196,120		208,561
Dilutive effect of share-based compensation arrangements (2)	980		5,584		1,127		5,402
Adjusted average common shares outstanding—diluted	194,156		208,691		197,247		213,963

Net income per share:

Basic	$	0.70	$	0.85	$	1.25	$	2.45

Diluted	$	0.70	$	0.83	$	1.25	$	2.39

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(1)Includes the impact of fully vested shares under our share-based compensation programs.

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


	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2020	2019	2020	2019
Shares of common stock equivalents	710	—	1,046	160