INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, restricted stock units, performance share units, unvested restricted stock awards, performance bonus awards, ESPP shares, warrants and convertible senior notes. If dilutive, those potentially dilutive securities are reflected in diluted net income (loss) per share by application of the treasury stock method, except for the convertible senior notes, which are subject to the if-converted method.

Each share of the Company's Class A and Class B common stock automatically converted into a single class of common stock on October 31, 2016. Refer to Note 11, Stockholders’ Equity, for additional information. Prior to the conversion, the Company computed net income (loss) per share of Class A and Class B common stock using the two class method. Under the two-class method, the undistributed earnings for each period were allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the period had been distributed. As the liquidation and dividend rights were identical for Class A and Class B common shares, the undistributed earnings were allocated on a proportionate basis. Under the two-class method, the computation of diluted net income (loss) per share of Class A common stock would reflect the conversion of Class B common stock, if dilutive, while the computation of diluted net income (loss) per share of Class B common stock would not reflect the conversion of those shares.

The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the year ended December 31, 2017 (in thousands, except share amounts and per share amounts):



	Year Ended December 31, 2017
Basic and diluted net income (loss) per share:
Numerator
Net income (loss) - continuing operations	$	28,601
Less: Net income (loss) attributable to noncontrolling interests	12,587
Net income (loss) attributable to common stockholders - continuing operations	$	16,014
Net income (loss) attributable to common stockholders - discontinued operations	(1,974		)
Net income (loss) attributable to common stockholders	$	14,040
Denominator
Shares used in computation of basic net income (loss) per share	559,367,075
Weighted-average effect of diluted securities:
Stock Options	842,047
Restricted Stock	488,773
Restricted Stock Units	7,153,674
Employee Stock Purchase Plan	201,504
Performance Share Units and Performance Bonus Awards	365,298
Shares used in computation of diluted net income (loss) per share	568,418,371

Basic net income (loss) per share:
Continuing operations	$	0.03
Discontinued operations	(0.00		)
Basic net income (loss) per share	$	0.03

Diluted net income (loss) per share ⁽¹⁾:
Continuing operations	$	0.03
Discontinued operations	(0.01		)
Diluted net income (loss) per share	$	0.02


(1)	The potentially dilutive impact of warrants and convertible senior notes has been excluded from the calculation of diluted net income (loss) per share for the year ended December 31, 2017 as the effect on net income (loss) per share from continuing operations was antidilutive.

The following table sets forth the computation of basic and diluted loss per share of the common stock and the Class A and Class B common stock for the year ended December 31, 2016 (in thousands, except share amounts and per share amounts):



	Period from January 1, 2016 through October 31, 2016 (pre-conversion)						Period from November 1, 2016 through December 31, 2016 (post-conversion)			Year Ended December 31, 2016 ⁽²⁾
										Year Ended December 31, 2016 ⁽²⁾
	Class A			Class B			Common			Total
Basic and diluted net income (loss) per share:
Numerator
Allocation of net income (loss) - continuing operations	$	(151,284	)	$	(632	)	$	(14,293	)	$	(166,209	)
Less: Allocation of net income (loss) attributable to noncontrolling interests	9,559			40			1,665			11,264
Allocation of net income (loss) attributable to common stockholders - continuing operations	$	(160,843	)	$	(672	)	$	(15,958	)	$	(177,473	)
Allocation of net income (loss) attributable to common stockholders - discontinued operations	(7,152		)	(30		)	(9,932		)	(17,114		)
Allocation of net income (loss) attributable to common stockholders	$	(167,995	)	$	(702	)	$	(25,890	)	$	(194,587	)
Denominator
Weighted-average common shares outstanding	574,755,214			2,399,976			574,884,987			576,354,258
Basic and diluted net income (loss) per share ⁽¹⁾:
Continuing operations	$	(0.28	)	$	(0.28	)	$	(0.03	)	$	(0.31	)
Discontinued operations	(0.01		)	(0.01		)	(0.02		)	(0.03		)
Basic and diluted net income (loss) per share	$	(0.29	)	$	(0.29	)	$	(0.05	)	$	(0.34	)


(1)	The potentially dilutive impacts of a conversion of Class B to Class A shares, outstanding equity awards, warrants and convertible senior notes have been excluded from the calculation of dilutive net income (loss) per share for the years ended December 31, 2016 as their effect on net income (loss) per share from continuing operations was antidilutive.

(2)

The shares of Class A and Class B common stock had equal dividend rights and converted into shares of common stock on a one-for-one basis on October 31, 2016. This full year column reflects the weighted average Class A and Class B common shares outstanding for the period from January 1, 2016 through the October 31, 2016 conversion date and the weighted average common shares outstanding for the period from November 1, 2016 through December 31, 2016 in the denominator of the basic and diluted loss per share calculations for the year ended December 31, 2016.

The following table sets forth the computation of basic and diluted loss per share of Class A and Class B common stock for the year ended December 31, 2015 (in thousands, except share amounts and per share amounts):



	Year Ended December 31, 2015
	Class A			Class B
Basic and diluted net income (loss) per share:
Numerator
Allocation of net income (loss) - continuing operations	$	(72,977	)	$	(270	)
Less: Allocation of net income (loss) attributable to noncontrolling interests	12,963			48
Allocation of net income (loss) attributable to common stockholders - continuing operations	$	(85,940	)	$	(318	)
Allocation of net income (loss) attributable to common stockholders - discontinued operations	106,531			395
Allocation of net income (loss) attributable to common stockholders	$	20,591		$	77
Denominator
Weighted-average common shares outstanding	647,706,249			2,399,976
Basic and diluted net income (loss) per share ⁽¹⁾:
Continuing operations	$	(0.13	)	$	(0.13	)
Discontinued operations	0.16			0.16
Basic and diluted net income (loss) per share	$	0.03		$	0.03


(1)	The potentially dilutive impacts of a conversion of Class B to Class A shares and outstanding equity awards have been excluded from the calculation of dilutive net income (loss) per share for the year ended December 31, 2015 as their effect on net income (loss) per share from continuing operations was antidilutive.

The following weighted-average outstanding equity awards are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share from continuing operations:



	Year Ended December 31,
	2017	2016	2015
Stock options	13,000	1,204,512	1,884,958
Restricted stock units	8,087,545	33,480,458	41,079,648
Performance share units	—	125,934	—
Restricted stock	—	1,335,613	1,346,447
Employee Stock Purchase Plan	—	1,184,330	916,837
Convertible senior notes	46,296,300	34,213,474	—
Warrants	46,296,300	29,761,907	—
Total	100,693,145	101,306,228	45,227,890