NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2017

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

NOTE 13. NET INCOME (LOSS) 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)	2017		2016		2015
Basic and diluted net loss per share
Net loss	$	(102,496)	$	(88,720)	$	(75,738)
Denominator		62,702		61,297		60,117
Basic and diluted net loss per share	$	(1.63)	$	(1.45)	$	(1.26)

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)	2017	2016	2015
Convertible debt	17,931	17,931	17,931
Stock options and equivalents	5,618	3,371	1,490
Total potentially dilutive common shares	23,549	21,302	19,421