Net Income Per Share

9 Months Ended

Sep. 30, 2022

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.


Net income per share

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2022		2021		2022		2021
Net income—basic and diluted	$	198,280	$	126,412	$	580,604	$	407,226

Average common shares outstanding—basic	162,506		186,741		171,116		191,357
Dilutive effect of share-based compensation arrangements	2,232		1,301		2,502		1,545
Adjusted average common shares outstanding—diluted	164,738		188,042		173,618		192,902

Net income per share
Basic	$	1.22	$	0.68	$	3.39	$	2.13
Diluted	$	1.20	$	0.67	$	3.34	$	2.11