Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net (Loss) Income Per Share

Basic net (loss) income per share is calculated by dividing net (loss) income by the weighted average number of shares outstanding during each period. Diluted net (loss) income per share is calculated by dividing net (loss) income by the diluted number of shares outstanding during each period. Except where the result would be anti-dilutive to net (loss) income, diluted net (loss) income per share would be calculated assuming the impact of the conversion of the 2018 Notes, the exercise of outstanding equity compensation awards and the exercise of contingent consideration warrants, all which have been exercised or have expired during the first quarter of 2018. 

We have a choice to settle the conversion obligation under the 2018 Notes in cash, shares or any combination of the two. We utilize the if-converted method to reflect the impact of the conversion of the 2018 Notes, unless the result is anti-dilutive. This method assumes the conversion of the 2018 Notes into shares of our ordinary shares and reflects the elimination of the interest expense related to the 2018 Notes.

The dilutive effect of the warrants, stock options and RSU’s has been calculated using the treasury stock method.

A reconciliation of basic and diluted net (loss) income per share, together with the related shares outstanding in thousands is as follows: 

	Three Months Ended March 31,
Net (Loss) Income Per Share:	2018			2017
Net (loss) income	$	(12,236	)	$	25,910
Weighted average shares:
Basic shares	38,559			41,374
Effect of dilutive securities—options, RSU’s and warrants outstanding	—			1,436
Diluted shares	38,559			42,810
Net (loss) income per share - basic	$	(0.32	)	$	0.63
Net (loss) income per share - diluted	$	(0.32	)	$	0.61

Potential common shares of 19,374 and 4,899 were excluded from the calculation of weighted average shares for the three months ended March 31, 2018 and 2017, respectively, because their effect was considered to be anti-dilutive. For the three months ended March 31, 2018, the effects of dilutive securities were entirely excluded from the calculation of net (loss) income per share as a net loss was reported in this period.