NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2016

NOTE 13 NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing the net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed similarly except that the weighted average number of common shares is increased to reflect all dilutive instruments. Diluted net income (loss) per share is calculated using the treasury stock method. In applying the treasury stock method, employee stock options with an exercise price greater than the average quoted market price of the common shares for the period outstanding are not included in the calculation of diluted net income (loss) per share as the impact is anti-dilutive.

Below is a reconciliation of the basic and diluted weighted average number of common shares and the computations for basic income (loss) per share and diluted income (loss) for the year ended December 31, 2016, 2015 and 2014:


	2016		2015		2014
	(in thousands, except per share amounts)
Net income (loss)	$	21,055	$	(20,450)	$	(311,943)

Weighted average common shares outstanding:		298,772		300,341		297,763
Effect of employee stock-based awards		1,701		—		—
Diluted shares outstanding:		300,474		300,341		297,763

Net income (loss) per share - basic:	$	0.07	$	(0.07)	$	(1.05)
Net income (loss) per share - diluted:	$	0.07	$	(0.07)	$	(1.05)

Options to purchase 2.0 million shares of common stock at an average exercise price of $3.91 at December 31, 2016 were not included in the computation of diluted weighted average shares because their exercise price exceeded the average price of the Company’s common stock for the year ended December 31, 2016 and their effect would have been anti-dilutive. In 2015 and 2014, as the Company was in a loss position, all potentially dilutive instruments were anti-dilutive and therefore not included in the calculation of diluted net loss per share.