NET INCOME (LOSS) PER COMMON SHARE

12 Months Ended

Dec. 31, 2019

15. NET INCOME (LOSS) PER COMMON SHARE

Net income per common share is calculated as basic net income per share and diluted net income per share. Basic net income per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per share is computed in the same manner as basic net income after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes the potential dilution that could occur: (i) if the RSUs with service conditions were fully vested (using the treasury stock method); (ii) if all of the Company’s outstanding stock options that are in-the-money were exercised (using the treasury stock method); (iii) if the RSUs with service and market conditions were considered contingently issuable; and (iv) if the RSUs with service and performance conditions were considered contingently issuable. The Company considered whether the options to purchase Class A common stock in connection with the ESPP were potentially dilutive and concluded there were no dilutive shares as all options are automatically exercised at the balance sheet date.

The Company considered the allocation of undistributed net income for multiple classes of common stock and determined that it was appropriate to allocate undistributed net income between the Company’s Class A and Class B common stock on an equal basis. For purposes of making this determination, the Company’s charter provides that the holders of Class A and Class B common stock have equal rights and privileges except with respect to voting on most other matters where Class B shares voted by Joseph Field or David Field have a 10 to 1 super vote.

The following tables present the computations of basic and diluted net income (loss) per share from continuing operations and discontinued operations:


	Year Ended December 31,
	2019		2018		2017
	(amounts in thousands, except share and per share data)
Basic Income (Loss) Per Share
Numerator
Net income available to the Company - continuing operations	$	(420,212)	$	(362,587)	$	233,013
Preferred stock dividends	—		—		2,015
Net income available to common shareholders from continuing operations	(420,212)		(362,587)		230,998
Income (loss) from discontinued operations, net of tax	—		1,152		836
Net income (loss) available to common shareholders	$	(420,212)	$	(361,435)	$	231,834
Denominator
Basic weighted average shares outstanding	136,967,455		138,069,608		51,392,899
Net Income (Loss) Per Common Share - Basic:
Net income (loss) from continuing operations per share available to common shareholders - Basic	$	(3.07)	$	(2.63)	$	4.49
Net income (loss) from discontinued operations per share available to common shareholders - Basic	—		0.01		0.02
Net income (loss) per share available to common shareholders - Basic	$	(3.07)	$	(2.62)	$	4.51
Diluted Income (Loss) Per Share
Numerator
Net income available to the Company - continuing operations	$	(420,212)	$	(362,587)	$	233,013
Preferred stock dividends	—		—		2,015
Net income available to common shareholders from continuing operations	(420,212)		(362,587)		230,998
Income (loss) from discontinued operations, net of tax	—		1,152		836
Net income (loss) available to common shareholders	$	(420,212)	$	(361,435)	$	231,834
Denominator
Basic weighted average shares outstanding	136,967,455		138,069,608		51,392,899
Effect of RSUs and options under the treasury stock method	—		—		1,492,257
Diluted weighted average shares outstanding	136,967,455		138,069,608		52,885,156
Net Income (Loss) Per Common Share - Diluted:
Net income (loss) from continuing operations per share available to common shareholders - Diluted	$	(3.07)	$	(2.63)	$	4.37
Net income (loss) from discontinued operations per share available to common shareholders - Diluted	—		0.01		0.02
Net income (loss) per share available to common shareholders - Diluted	$	(3.07)	$	(2.62)	$	4.38

Disclosure of Anti-Dilutive Shares

The following table presents those shares excluded as they were anti-dilutive:


	Impact Of Equity Awards
	Years Ended December 31,
	2019		2018		2017
	(amounts in thousands, except per share data)
Dilutive or anti-dilutive for all potentially dilutive equivalent shares	anti-dilutive		anti-dilutive		dilutive
Excluded shares as anti-dilutive under the treasury stock method:
Options excluded	543		564		548
Price range of options excluded: from	$	9.66	$	6.43	$	11.69
Price range of options excluded: to	$	13.98	$	13.98	$	13.98
RSUs with service conditions	2,953		1,394		163
Excluded RSUs with service and market conditions as market conditions not met	70		226		336
Excluded RSUs with service and performance conditions until performance criteria is probable	—		—		—
Excluded preferred stock as anti-dilutive under the as if method	—		—		—
Excluded shares as anti-dilutive when reporting a net loss	331		755		—