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Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share

Earnings Per Share

21. 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:


		Year Ended December 31,
(in thousands)		2021			2020			2019
Income (loss) from continuing operations		$	28,217		$	(68,445)		$	97,603
Loss from discontinued operations, net of tax			—			—			(273)
Net income (loss)			28,217			(68,445)			97,330
Less: Earnings attributable to participating securities			(1,172)			(1,338)			(1,348)
Net income (loss) attributable to common stockholders		$	27,045		$	(69,783)		$	95,982

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


		Year Ended December 31,
(in thousands)		2021		2020		2019
Weighted average common shares outstanding including participating securities		153,484		152,827		139,317
Less: Weighted average participating securities outstanding		(1,800)		(1,999)		(1,825)
Weighted average common shares outstanding used in basic net income (loss) per common share		151,684		150,828		137,492
Net dilutive potential common shares issuable:
On exercise of options and vesting of performance-based restricted stock units		144		—		34
On settlement of ESPP shares		2		—		2
Weighted average common shares outstanding used in diluted net income (loss) per common share		151,830		150,828		137,528

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:


		Year Ended December 31,
(in thousands)		2021		2020		2019
On exercise of options where exercise price is greater than average market value for the period		31		96		154
On exercise of options and vesting of performance-based restricted stock units		—		54		—
On settlement of ESPP shares		—		17		—
Net dilutive potential common shares issuable		31		167		154