Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings (Loss) Per Share

The following is a summary of Lexicon's earnings (loss) per share calculations and reconciliations of basic to diluted earnings (loss) per share:


	Year Ended December 31,
(In thousands, except per share amounts)	2019		2018		2017
Numerator:
Net income (loss)	$	130,133	$	(120,548)	$	(122,993)
Add interest expense on Convertible Notes	5,067		—		—
Adjusted net income (loss)	$	135,200	$	(120,548)	$	(122,993)

Denominator:
Shares used in computing net income (loss) per common share, basic	106,218		105,830		105,237
Add effect of potential dilutive securities
Share based awards	164		—		—
Convertible Notes	10,365		—		—
Shares used in computing net income (loss) per common share, diluted	116,747		105,830		105,237

Net income (loss) per share - basic	$	1.23	$	(1.14)	$	(1.17)
Net income (loss) per share - diluted	$	1.16	$	(1.14)	$	(1.17)

For periods presented with a net loss, the weighted average number of shares outstanding are the same for both basic and diluted net loss per common share. The average number of shares associated with stock options and restricted stock units that were excluded from diluted earnings per share that would potentially dilute earnings per share in the future was 8,206,390, 7,438,134 and 5,907,643, respectively, for the years ended December 31, 2019, 2018 and 2017. For periods presented with a net loss, the shares associated with the Convertible Notes are not included in the computation of diluted earnings per share because they are antidilutive.