Weighted Average Common Shares

12 Months Ended

Dec. 31, 2016

14. WEIGHTED AVERAGE COMMON SHARES

Basic net (loss) income per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net (loss) income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock and restricted stock units were settled for common shares during the period.

The weighted average number of common shares used to compute basic and diluted net (loss) income per share for the years ended December 31, 2016, 2015 and 2014 were as follows:

	For the Year Ended December 31,
	2016 ⁽¹⁾		2015		2014 ⁽¹⁾
Basic common shares outstanding		68,373		67,860		67,173
Common stock equivalents		-		468		-
Diluted common shares outstanding		68,373		68,328		67,173

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(1)Due to the fact that we reported a loss from continuing operations for the years ended December 31, 2016 and 2014, potential common stock equivalents were excluded from the diluted common shares outstanding calculation. Per FASB ASC Topic 260 – Earnings per Share, an entity that reports discontinued operations shall use income or loss from continuing operations as the benchmark for calculating diluted common shares outstanding, and as such, we have zero common stock equivalents since these shares would have an anti-dilutive effect on our net loss per share for the years ended December 31, 2016 and 2014.

In addition to the common stock issued upon the exercise of employee stock options, the granting of restricted stock and the vesting of restricted stock units to be settled in stock, we issued approximately 0.1 million of shares for each the years ended December 31, 2016, 2015 and 2014, respectively, upon the purchase of common stock pursuant to our employee stock purchase plan.