Net Income (Loss) per Share (Tables)

3 Months Ended

Mar. 31, 2016

Net Income (Loss) per Share

Schedule of computation of basic and diluted net income per share

	Three Months Ended March 31,
(In thousands except for per share amounts)	2016 (1)		2015
Numerator:
Net income (loss), basic and diluted	$	4,435	$	(10,667	)
Denominator:
Weighted-average shares used to compute basic net income (loss) per share	112,482		114,658
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan	196		—
Dilutive effect of unvested restricted stock awards (“RSAs”)	500		—
Weighted-average shares used to compute diluted net income (loss) per share	113,178		114,658
Net income (loss) per share
Basic	$	0.04	$	(0.09	)
Diluted	$	0.04	$	(0.09	)

(1) Includes 3.3 million options, 0.1 million restricted stock units, and 0.4 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma, Inc. (“Theravance Biopharma”) in connection with the Spin-Off of Theravance Biopharma in June 2014 (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. Stock options of 3.3 million were excluded from the diluted net income per share calculation as their effect was anti-dilutive.

Schedule of anti-dilutive securities

	Three Months Ended March 31,
(In thousands)	2016 (1)	2015 (2)
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan	3,917	5,866
Unvested RSAs	510	1,930
Shares issuable upon conversion of convertible subordinated notes	12,904	12,494
	17,331	20,290

(1) Includes 3.3 million options, 0.1 million restricted stock units, and 0.4 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma, Inc. (“Theravance Biopharma”) in connection with the Spin-Off of Theravance Biopharma in June 2014 (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. Stock options of 3.3 million were excluded from the diluted net income per share calculation as their effect was anti-dilutive.

(2) Includes 4.5 million options, 0.6 million restricted stock units, and 1.2 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.