Net Loss per Share

12 Months Ended

Dec. 31, 2015

Net Loss per Share

Net Loss per Share

2. Net Loss per Share

        Basic net loss per share is computed by dividing net loss by the weighted- average number of shares of common stock outstanding, less RSAs subject to forfeiture. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding, less RSAs subject to forfeiture, plus all additional common shares that would have been outstanding, assuming dilutive potential common shares had been issued for other dilutive securities.

        For the years ended December 31, 2015, 2014 and 2013, diluted and basic net loss per common share was identical since potential common shares were excluded from the calculation, as their effect was anti-dilutive.

Anti-dilutive Securities

        The following common equivalent shares were not included in the computation of diluted net loss per share because their effect was anti-dilutive (in thousands):

	Year Ended December 31,
	2015(1)		2014		2013
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan		5,290		6,239		4,095
Unvested RSAs		1,644		1,772		2,364
Shares issuable upon conversion of convertible subordinated notes		12,904		12,329		2,780
Total		19,838		20,340		9,239

(1)           Includes 4.1 million options, 0.4 million restricted stock units, and 1.0 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma in connection with the Spin-Off during the year ended December 31, 2015. Subsequent to the Spin-Off, stock-based compensation expense associated with the awards held by Theravance Biopharma employees granted prior to the Spin-Off is recognized by Theravance Biopharma.