Earnings Per Share

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Numerator:
Net income (loss)	$	(58,574)	$	130,133	$	(120,548)
Add interest expense on Convertible Notes	—		5,067		—
Adjusted net income (loss)	$	(58,574)	$	135,200	$	(120,548)

Denominator:
Shares used in computing net income (loss) per common share, basic	110,841		106,218		105,830
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	110,841		116,747		105,830

Net income (loss) per share - basic	$	(0.53)	$	1.23	$	(1.14)
Net income (loss) per share - diluted	$	(0.53)	$	1.16	$	(1.14)

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 11,113,054, 8,206,390 and 7,438,134, respectively, for the years ended December 31, 2020, 2019 and 2018. 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.