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Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

16. Earnings per Share

Basic net income (loss) per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) per common share is determined by dividing net income (loss), after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and stock-settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, only distributed earnings (dividends) are allocated to participating securities, as participating securities do not have a contractual obligation to participate in our undistributed losses.

Diluted net income (loss) per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options, performance-based restricted stock units and stock to be issued pursuant to our ESPP unless their effect would be anti-dilutive.

The following table shows the calculation for net income (loss) attributable to common stockholders, which is used in the calculation of basic and diluted net income (loss) per common share:


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(in thousands)		2021			2020			2021			2020
Net income (loss)		$	9,304		$	18,332		$	22,225		$	(73,236)
Less: Earnings attributable to participating securities			(456)			(439)			(909)			(1,083)
Net income (loss) attributable to common stockholders		$	8,848		$	17,893		$	21,316		$	(74,319)

The following table shows the potential shares of common stock that were included in computing diluted net income (loss) per common share:


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(in thousands)		2021		2020		2021		2020
Weighted average common shares outstanding including participating securities		154,041		152,973		153,422		152,790
Less: Weighted average participating securities outstanding		(1,883)		(1,999)		(1,807)		(2,060)
Weighted average common shares outstanding used in basic net income (loss) per common share		152,158		150,974		151,615		150,730
Net dilutive potential common shares issuable:
On exercise of options and vesting of performance-based restricted stock units		138		57		152		—
On settlement of ESPP shares		1		7		2		—
Weighted average common shares outstanding used in diluted net income (loss) per common share		152,297		151,038		151,769		150,730

The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income (loss) per common share as their inclusion would have been anti-dilutive:


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(in thousands)		2021		2020		2021		2020
On exercise of options where exercise price is greater than average market value for the period		15		85		27		102
On exercise of options and vesting of performance-based restricted stock units		—		—		—		57
On settlement of ESPP shares		—		—		—		19
Net dilutive potential common shares issuable		15		85		27		178