NET INCOME PER SHARE

12 Months Ended

Dec. 31, 2015

NOTE 13. NET INCOME PER SHARE

Basic net income (loss) per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock options and convertible debt. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. Basic and diluted earnings per common share are calculated as follows:

(in thousands, except for per share amounts)	2015			2014		2013
Basic income (loss) per share
Net income (loss)	$	(75,738	)	$	131,762	$	43,313
Denominator		60,117			58,293		56,736

Basic net income (loss) per share	$	(1.26	)	$	2.26	$	0.76


Diluted net income (loss) per share
Numerator:
Net income (loss)	$	(75,738	)	$	131,762	$	43,313
Add interest expense on convertible debt, net of tax		—			4,256		—

	$	(75,738	)	$	136,018	$	43,313

Denominator:
Denominator for basic income (loss) per share		60,117			58,293		56,736

Add effect of dilutive securities:
Stock options and equivalents		—			2,463		808
Convertible debt		—			5,551		—

Denominator for diluted net income (loss) per share:		60,117			66,307		57,544

Diluted net income (loss) per share	$	(1.26	)	$	2.05	$	0.75

The following table sets forth outstanding potential shares of common stock that are not included in the computation of diluted net income (loss) per share because, to do so would be anti-dilutive:

(in thousands)	2015		2014		2013
Convertible debt		17,931		—		—
Stock options and equivalents		1,490		1,578		4,824

Total potentially dilutive shares		19,421		1,578		4,824