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NET INCOME (LOSS) PER SHARE
 9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE
 
Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock options, RSUs, PSUs, ESPP and convertible debt. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. For purposes of this calculation, options to purchase stock, including stock options, RSUs, PSUs and ESPP, are considered to be potential common shares and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. Basic and diluted earnings per common share are calculated as follows:
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands, except for per share amounts)
 
2018
 
2017
 
2018
 
2017
Basic net income (loss) per share
 
 
 
 
 
 
 
 
Net income (loss)
 
$
48,270

 
$
(15,992
)
 
$
61,046

 
$
(69,392
)
Denominator
 
63,917

 
62,997

 
63,714

 
62,556

Basic net income (loss) per share
 
$
0.76

 
$
(0.25
)
 
$
0.96

 
$
(1.11
)
 
 
 
 
 
 
 
 
 
Diluted net income (loss) per share
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
Net income (loss)
 
$
48,270

 
$
(15,992
)
 
$
61,046

 
$
(69,392
)
Add: Interest Expense on convertible debt, net of tax
 
5,340

 
—

 
15,815

 
—

Denominator:
 
 
 
 
 
 
 
 
Denominator for basic income (loss) per share
 
63,917

 
62,997

 
63,714

 
62,556

Add effect of diluted securities:
 
 
 
 
 
 
 
 
Stock options and equivalents and convertible debt
 
18,773

 
—

 
18,568

 
—

Denominator for diluted income (loss) per share
 
82,690

 
62,997

 
82,282

 
62,556

Diluted net income (loss) per share
 
$
0.65

 
$
(0.25
)
 
$
0.93

 
$
(1.11
)

 
The following table sets forth outstanding potentially dilutive common shares that are not included in the computation of diluted net income (loss) per share because to do so would be anti-dilutive:
 
 
 
September 30,
2018
 
September 30,
2017
(in thousands)
 
 
Convertible debt
 
—

 
17,931

Stock options and equivalents
 
3,359

 
7,393

Total potentially dilutive common shares
 
3,359

 
25,324