Annual report pursuant to Section 13 and 15(d)

Net Loss Per Share

v3.6.0.2
Net Loss Per Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Net Loss Per Share
Net Income (Loss) Per Share
Net income (loss) per share is computed as required by the accounting standard for earnings per share, or EPS. Basic EPS is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive.

As a result of the Company's adoption of ASU No. 2016-09 in the second quarter 2016, excess tax benefits and tax deficiencies are no longer recognized in additional paid-in capital. As a result, when computing diluted EPS using the treasury stock method, fewer hypothetical shares can be repurchased resulting in a greater number of incremental shares being issued upon the exercise of share-based payment awards. The impact of adoption of ASU No. 2016-09 for the year ended December 31, 2016 on diluted income (loss) per share (Note 1) is to increase net income by $8.3 million due to the inclusion of excess tax benefits in the provision for income taxes, and to increase the number of incremental shares used in computing diluted EPS by 846,000 shares, or an increase to diluted net income per share of $0.12 per share.
The Company has two classes of stock outstanding, Class A common stock and Class B common stock. The economic rights of the Class A common stock and Class B common stock, including rights in connection with dividends and payments upon a liquidation or merger are identical, and the Class A common stock and Class B common stock will be treated equally, identically and ratably, unless differential treatment is approved by the Class A common stock and Class B common stock, each voting separately as a class. The Company computes basic earnings per share by dividing net income (loss) by the weighted average number of shares of Class A and Class B common stock outstanding during the period. For diluted earnings per share, the Company divides net income (loss) by the sum of the weighted average number of shares of Class A and Class B common stock outstanding and the potential number of shares of dilutive Class A and Class B common stock outstanding during the period.
 
Years Ended December 31,
 
2016
 
2015
 
2014
 
(in thousands, except per share amounts)
Numerator:
 
 
 
 
 
Net income (loss)
$
61,292

 
$
(42,331
)
 
$
(7,041
)
Denominator:
 
 
 
 
 
Weighted average common shares outstanding—basic
63,781

 
53,378

 
36,472

Dilutive common stock equivalents
3,872

 
—

 
—

Weighted average common shares outstanding—diluted
67,653

 
53,378

 
36,472

Net income (loss) per share:
 
 
 
 
 
Basic
$
0.96

 
$
(0.79
)
 
$
(0.19
)
Diluted
$
0.91

 
$
(0.79
)
 
$
(0.19
)

The Company excluded 0.8 million, 3.0 million and 3.1 million common stock equivalents resulting from outstanding equity awards for the year ended December 31, 2016, 2015 and 2014, respectively, from the calculation of diluted net income (loss) per share due to their anti-dilutive nature.