Net Income Per Share

3 Months Ended

Mar. 31, 2025

3. 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 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 March 31,

(In thousands, except per-share amounts)	2025		2024

Net income—basic and diluted	$	144,558	$	152,354

Average common shares outstanding—basic		145,618		153,817
Dilutive effect of share-based compensation arrangements (1)		2,109		2,154
Adjusted average common shares outstanding—diluted		147,727		155,971

Net income per share
Basic	$	0.99	$	0.99
Diluted	$	0.98	$	0.98

(1)

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 their effect would be anti-dilutive.


	Three Months Ended March 31,

(In thousands)	2025		2024

Shares of common stock equivalents		24		—