Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

Basic net loss per share amounts have been computed based on the weighted-average number of common shares outstanding. Diluted net loss per share amounts have been computed based on the weighted-average number of common shares outstanding plus the dilutive effect, if any, of potential common shares. The computation of potential common shares has been performed using the treasury stock method. Because of the net loss reported in certain periods, diluted and basic net loss per share amounts are the same for those periods.

The net income (loss) and the number of shares used to compute basic and diluted earnings per share for the three and six-month periods ended June 30, 2016 and 2015 are as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
In thousands, except per share amounts	2016		2015			2016		2015
Net income (loss)	$	109,848	$	(63,160	)	$	56,061	$	(115,835	)

Shares used in basic computation	191,485		188,598			190,894		188,220
Dilutive impact of employee equity award plans	3,084		—			2,610		—
Shares used in diluted computation	194,569		188,598			193,504		188,220

Net income per Share:
Basic	$	0.57	$	(0.33	)	$	0.29	$	(0.62	)
Diluted	$	0.56	$	(0.33	)	$	0.29	$	(0.62	)

We have excluded 10.1 million and 14.8 million weighted-average shares of common stock potentially issuable under employee equity award plans in the three months ended June 30, 2016 and 2015, respectively, and 10.6 million and 14.8 million shares of common stock potentially issuable under employee equity award plans in the six months ended June 30, 2016 and 2015, respectively, from the diluted net income per share calculations, as their effect would have been anti-dilutive.

We have also excluded the impact of the convertible debt and related warrants from the calculation of diluted share computation. Holders of the convertible notes may covert their Notes into shares of the Company’s common stock at the applicable conversion rate, subject to certain conditions (refer to Note 9 for a full description). Since it is the Company's stated intent to settle the principal amount of the Notes in cash, the Company has used the treasury stock method for determining the potential dilution in the diluted earnings per share computation. Since the average price of the Company's common stock was less than the effective conversion price for such Notes during the reporting periods, the Notes were not dilutive for such periods.

Since the average price of the Company's common stock was less than the strike price of the Warrants for the reporting periods, such Warrants were also not dilutive. Upon exercise of the Warrants, holders of the Warrants may acquire up to 21.5 million shares of the Company's common stock at an exercise price of $12.00 (refer to Note 9 for additional information on the Warrants). If the market price per share of the Company's common stock for the period exceeds the established strike price, the Warrants will have a dilutive effect on its diluted net income per share using the treasury-stock-type method.