11. Net Income (Loss) per Common Share

On March 1, 2017, the Company effected a 1-for-5 reverse stock split of the Company’s outstanding common stock. As a result, all common stock share amounts included in these consolidated financial statements have been retroactively reduced by a factor of five, and all common stock per share amounts have been increased by a factor of five, with the exception of the Company’s common stock par value. See Note 1 — Description of Business.

Basic net income (loss) per share excludes dilution for potentially dilutive securities and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution under the treasury method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For periods where the Company has presented a net loss, potentially dilutive securities are excluded from the computation of diluted net loss per share as they would be antidilutive. During 2015, 1,800,000 shares of the Company’s common stock, which were loaned to Bank of America pursuant to the terms of a share lending agreement, were issued and outstanding, with the holder of the borrowed shares having all the rights of a holder of the Company’s common stock. As the share borrower was required to return all borrowed shares to the Company, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share during the period presented for 2015. These shares were returned to the Company in the third quarter of 2015.

The following tables summarize the components of the basic and diluted net income (loss) per common share computations:


	Year Ended December 31,
	2016		2015			2014
	(In thousands, except per share data)
Basic EPS:
Net income (loss) (numerator)	$	125,664	$	(368,445	)	$	(198,382	)

Weighted average common shares (denominator)		92,053		81,233			77,045

Net income (loss) per share	$	1.37	$	(4.54	)	$	(2.57	)

Diluted EPS:
Net income (loss) (numerator)	$	125,664	$	(368,445	)	$	(198,382	)

Weighted average common shares		92,053		81,233			77,045
Effect of dilutive securities — common shares issuable		32		—			—

Adjusted weighted average common shares (denominator)		92,085		81,233			77,045

Net income (loss) per share	$	1.36	$	(4.54	)	$	(2.57	)

Common shares issuable represents incremental shares of common stock which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the senior convertible notes.

Potentially dilutive securities outstanding that are considered antidilutive are summarized as follows (in shares):


	December 31,
	2016		2015		2014
Exercise of common stock options		5,530,256		3,955,845		4,308,332
Conversion of senior convertible notes into common stock		814,561		814,561		3,464,616
Exercise of common stock warrants		9,740,597		814,919		1,997,575
Vesting of restricted stock units		702,867		360,924		522,144

		16,788,281		5,946,249		10,292,667