Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

Note 2 — Income (Loss) Per Share

The Company considers unvested share-based awards that have non-forfeitable rights to dividends prior to vesting to be participating shares, which are treated as a separate class of security from the Company’s common shares for calculating per share data. Therefore, the Company applies the two-class method when calculating income (loss) per share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. However, since the holders of the participating shares are not obligated to fund losses, participating shares are excluded from the calculation of loss per share.

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period under the two-class method. Diluted income per share is calculated by dividing net income by the weighted average number of shares used to calculate basic income (loss) per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and non-participating share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share in the periods the performance targets have been achieved. The computations of basic and diluted income (loss) per share for the years ended December 31, 2016, 2015, and 2014 are as follows:

	For the year ended December 31,
	2016			2015			2014
	(in thousands, except per share amounts)
Net income (loss)	$	(122,210	)	$	(31,978	)	$	(66,940	)

Net income (loss) per common share:
Basic	$	(3.11	)	$	(0.80	)	$	(1.70	)
Diluted	$	(3.11	)	$	(0.80	)	$	(1.70	)

Basic weighted average shares outstanding	39,340			39,742			39,350
Effect of potentially dilutive share-based awards	—			—			—

Diluted weighted average shares outstanding	39,340			39,742			39,350

Unvested participating shares excluded from basic weighted average shares outstanding since the securityholders are not obligated to fund losses	312			1,017			1,141

Common share equivalents excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive	107			146			339

Potentially dilutive non-participating shares excluded from the diluted calculation as their effect would be antidilutive	1,896			2,111			1,123