Earnings Per Share

6 Months Ended

Jun. 30, 2024

Basic earnings per share is calculated by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, and restricted stock and restricted stock units and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method, or the if-converted method for the in-the-money conversion feature of the Company’s 2023 Notes (“the 2023 Notes”). This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.

The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands, except per share amounts)	2024		2023		2024		2023
Net income per share:
Numerator:
Net income	$	36,056	$	168,880	$	68,954	$	172,161
Denominator:
Weighted-average shares outstanding - basic	107,721		109,039		107,906		108,561
Effect of potentially dilutive common shares	1,326		2,562		1,722		2,812
Weighted-average shares outstanding - diluted	109,047		111,601		109,628		111,373
Basic net income per share	$	0.33	$	1.55	$	0.64	$	1.59
Diluted net income per share	$	0.33	$	1.51	$	0.63	$	1.55