Net Income per Share

12 Months Ended

Dec. 31, 2016

The following table sets forth the calculation of basic and diluted net income per share:



	December 31,
	2016		2015		2014
	(In millions, except net income per share)
Numerator:
Net income	$	52	$	143	$	62
Denominator:
Shares outstanding at the beginning of the period	55		49		46
Weighted-average number of shares issued:
Common stock offering	—		3		—
Convertible senior notes	—		—		1
Denominator for basic net income per share	55		52		47
Effect of dilutive securities:
Share-based compensation	—		1		—
Convertible senior notes ⁽¹⁾	—		1		1
1.125% Warrants ⁽¹⁾	1		2		—
Denominator for diluted net income per share	56		56		48

Net income per share: ⁽²⁾
Basic	$	0.93	$	2.75	$	1.33
Diluted	$	0.92	$	2.58	$	1.29

Potentially dilutive common shares excluded from calculations: ⁽³⁾
1.125% Warrants	—		—		13

_______________________________


(1)	For more information regarding the convertible senior notes, refer to Note 12, “Debt.” For more information regarding the 1.125% Warrants, refer to Note 15, “Stockholders' Equity.”


(2)	Source data for calculations in thousands.

(3)

The dilutive effect of all potentially dilutive common shares is calculated using the treasury-stock method. Certain potentially dilutive common shares issuable are not included in the computation of diluted net income per share because to do so would be anti-dilutive. For the year ended December 31, 2014, the 1.125% Warrants were excluded from diluted shares outstanding because the exercise price exceeded the average market price of our common stock.