Net Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

NOTE 5. NET INCOME (LOSS) PER COMMON SHARE

The computation of basic net income (loss) per common share is based on the weighted- average number of common shares outstanding during each period. The computation of diluted net income (loss) per common share is based on the weighted-average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, restricted stock units, performance share awards, stock appreciation rights, ESPP shares, warrants, and shares issuable upon conversion of convertible debt.

In periods in which the Company reports net income, the Company uses the “if-converted” method in calculating the diluted net income per common share effect of the assumed conversion of the Convertible Notes. Under the “if-converted” method, interest expense, net of tax, related to the Convertible Notes is added back to net income, and the Convertible Notes are assumed to have been converted into common shares at the beginning of the period (or issuance date) in periods in which there would have been a dilutive effect. The Convertible Notes can be settled in common stock, cash, or a combination thereof, at the Company’s election. During periods of net income, the Company’s intent and ability to settle the Convertible Notes in cash could impact the computation of diluted net income per common share.

In periods in which the Company reports a net loss, all common stock equivalents are deemed anti-dilutive such that basic net loss per common share and diluted net loss per common share are equal.

The following table reconciles the numerator and denominator used to calculate diluted net income (loss) per common share:

	Years Ended December 31,
	2014		2013			2012
Numerator:
Net income (loss)	$	276,452	$	(42,613	)	$	(41,257	)
Interest expense on convertible notes, net of tax		14,030		—			—
Numerator for diluted net income (loss) per common share calculation	$	290,482	$	(42,613	)	$	(41,257	)
Denominator:
Weighted-average common shares, basic		76,929		75,165			73,480
Dilutive effect of common stock equivalents		8,071		—			—
Weighted-average common shares, diluted		85,000		75,165			73,480
Net income (loss) per common share:
Basic net income (loss) per common share	$	3.59	$	(0.57	)	$	(0.56	)
Diluted net income (loss) per common share	$	3.42	$	(0.57	)	$	(0.56	)

Approximately 12.6 million and 13.0 million potentially dilutive common shares have been excluded from the diluted net loss per common share computations for the years ended December 31, 2013 and 2012, respectively, because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss in each of these years.