Net (Loss) Income Per Share

6 Months Ended

Jun. 30, 2021

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 - diluted 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 2023 Notes, the conversion of our preferred shares, the exercise of outstanding equity compensation awards, and ordinary shares expected to be issued under our employee stock purchase plan (“ESPP”).

We have a choice to settle the conversion obligation under the 2023 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 2023 Notes, unless the result is anti-dilutive. This method assumes the conversion of the 2023 Notes into shares of our ordinary shares and reflects the elimination of the interest expense related to the 2023 Notes.

The dilutive effect of the stock options, restricted stock units, preferred shares and ordinary shares expected to be issued under our ESPP has been calculated using the treasury stock method. The dilutive effect of the performance share units (“PSUs”) will be calculated using the treasury stock method, if and when the contingent vesting condition is achieved.

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 June 30,				Six Months Ended June 30,
Net (Loss) Income Per Share:	2021		2020		2021		2020

Net (loss) income	$	(19,581)	$	30,874	$	(33,026)	$	30,009
Add: interest from 2023 Notes, net of tax	—		3,237		—		6,427
Net (loss) income - diluted	$	(19,581)	$	34,111	$	(33,026)	$	36,436

Weighted average shares:
Basic shares	58,488		54,272		58,465		47,665
Effect of dilutive securities—employee and director equity awards outstanding, preferred shares and 2023 Notes	—		15,670		—		15,418

Diluted shares	58,488		69,942		58,465		63,083

Net (loss) income per share - basic	$	(0.33)	$	0.57	$	(0.56)	$	0.63
Net (loss) income per share - diluted	$	(0.33)	$	0.49	$	(0.56)	$	0.58

Potential ordinary shares of 15,586 and 2,472 were excluded from the calculation of weighted average shares for the three months ended June 30, 2021 and 2020, respectively, and potential ordinary shares of 15,426 and 2,537 were excluded from the calculation of weighted average shares for the six months ended June 30, 2021 and 2020, respectively, because either their effect was considered to be anti-dilutive or they were related to shares from PSUs for which the contingent vesting condition had not been achieved. For the three and six months ended June 30, 2021, the effects of dilutive securities were entirely excluded from the calculation of net loss per share as a net loss was reported in these periods.