NET INCOME (LOSS) PER SHARE

The computation of basic and diluted net income (loss) per share was as follows (in thousands, except per share amounts):



	Year Ended December 31,
	2018		2017			2016
Numerator:
Net income (loss)	$	690,070	$	154,227		$	(70,222	)
Net income allocated to participating securities	—		(367		)	—
Net income (loss) allocable to common stock for basic net income (loss) per share	690,070		153,860			(70,222		)
Adjustment to net income allocated to participating securities	—		22			—
Net income (loss) allocable to common stock for diluted net income (loss) per share	$	690,070	$	153,882		$	(70,222	)
Denominator:
Weighted-average shares of common stock outstanding used in computing basic net income (loss) per share	297,892		293,588			250,531
Dilutive securities	14,911		18,415			—
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income (loss) per share	312,803		312,003			250,531

Net income (loss) per share, basic	$	2.32	$	0.52		$	(0.28	)
Net income (loss) per share, diluted	$	2.21	$	0.49		$	(0.28	)

Potential shares of common stock not included in the computation of diluted net income (loss) per share because to do so would be anti-dilutive was as follows (in thousands):



	Year Ended December 31,
	2018	2017	2016
Outstanding stock options, unvested RSUs and ESPP contributions	3,968	1,645	27,568
Secured Convertible Notes due 2018 held by entities associated with Deerfield Management Company, L.P. (Deerfield Notes)	—	—	33,890
2014 Warrants	—	—	1,000
Total	3,968	1,645	62,458

The Deerfield Notes were repaid in June 2017. Warrants to purchase an aggregate of 1,000,000 shares of our common stock issued in January 2014 (2014 Warrants) were participating securities. The warrant holders did not have a contractual obligation to share in our losses. The 2014 Warrants were fully exercised in September 2017.