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NET INCOME (LOSS) PER SHARE
 12 Months Ended
Dec. 31, 2016
NET INCOME (LOSS) PER SHARE  
NET INCOME (LOSS) PER SHARE

2.     NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common shares outstanding. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common shares and dilutive potential common share equivalents then outstanding. Dilutive potential common share equivalents include the assumed exercise, vesting and issuance of employee stock awards using the treasury stock method, as well as common shares issuable upon assumed conversion of our convertible debt using the if-converted method.

The following table shows the computation of basic and diluted net income (loss) per share for the years ended December 31, 2016, 2015 and 2014:

                                                                                                                                                                                    

 

 

 

Year Ended December 31,

 

 

(In thousands except per share data)

 

2016(1)

 

2015

 

2014

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$
59,536

 

$
(18,760

)

$
(73,530

)

 

Loss from discontinued operations, basic

 

 

—

 

 

—

 

 
(94,934

)

 

 

 

 

 

 

 

 

 

 

Net income (loss), attributable to common stockholders, basic

 

 
59,536

 

 
(18,760

)

 
(168,464

)

 

Add: Interest expense on 2023 Notes

 

 
5,790

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders, diluted

 

$
65,326

 

$
(18,760

)

$
(168,464

)

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used to compute basic net income (loss) per share

 

 
110,280

 

 
115,372

 

 
112,059

 

 

Dilutive effect of 2023 Notes

 

 
12,541

 

 

—

 

 

—

 

 

Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan          

 

 
412

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used to compute diluted net income (loss) per share

 

 
123,233

 

 
115,372

 

 
112,059

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$
0.54

 

$
(0.16

)

$
(1.50

)

 

 

 

 

 

 

 

 

 

 

Diluted

 

$
0.53

 

$
(0.16

)

$
(1.50

)

 

 

 

 

 

 

 

 

 

Anti-dilutive Securities

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

                                                                                                                                                                                    

 

 

 

Year Ended December 31,

 

 

(In thousands)

 

2016(1)

 

2015(2)

 

2014

 

 

Outstanding options and awards granted under equity incentive plan and employee stock purchase plan

 

 
4,073 

 

 
6,934 

 

 
8,011 

 

 

Shares issuable upon conversion of 2023 Notes

 

 

—

 

 
12,904 

 

 
12,329 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
4,073 

 

 
19,838 

 

 
20,340 

 

 

 

 

 

 

 

 

 

 

 

 

(1)          

Includes 2.9 million options, 0.1 million restricted stock units ("RSUs"), and 0.2 million unvested restricted stock awards ("RSAs") retained by former employees who were transferred to Theravance Biopharma in connection with the Spin-Off. 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. Under Anti-Dilutive Securities, 2.8 million options were excluded from the diluted net income per share calculation as their effect was anti-dilutive.

(2)          

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. All of these awards were excluded from the diluted net loss per share calculation as their effect was anti-dilutive.