NET LOSS PER COMMON SHARE

9 Months Ended

Sep. 30, 2019

NET INCOME (LOSS) PER COMMON SHARE

Potentially issuable shares of common stock include shares issuable upon the exercise of outstanding employee stock option awards, common stock issuable under the Company’s ESPP, unvested RSUs, common stock held by the Company's NQDC Plan and contingent issuances of common stock related to convertible debt.

The following table sets forth the computation of basic and diluted earnings per common share (in thousands of common shares):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
Numerator:
Net Income (Loss), basic	$	55,036	$	(12,620	)	$	(38,872	)	$	(73,561	)
Add: Interest on 2024 notes	937		—			—			—
Net Income (Loss), diluted	$	55,973	$	(12,620	)	$	(38,872	)	$	(73,561	)
Denominator:
Weighted-average common shares outstanding, basic	179,289		177,481			178,873			176,767
Effect of dilutive securities:
Options to purchase common stock	1,560		—			—			—
Common stock issuable under the 2024 notes	3,970		—			—			—
Unvested RSUs	669		—			—			—
Common stock potentially issuable for ESPP purchases	231		—			—			—
Common shares held by the NQDC	205		—			—			—
Weighted-average common shares outstanding, diluted	185,924		177,481			178,873			176,767
Net Income (Loss) per common share, basic	0.31		(0.07		)	(0.22		)	(0.42		)
Net Income (Loss) per common share, diluted	0.30		(0.07		)	(0.22		)	(0.42		)

In addition to the equity instruments included in the table above, the table below presents potential shares of common stock that were excluded from the computation of diluted earnings per common share as they were anti-dilutive using the if-converted or treasury stock method (in thousands of common shares):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Options to purchase common stock	5,829	7,517	7,388	7,517
Common stock issuable under the 2018 Notes	—	3,983	—	3,983
Common stock issuable under the 2020 Notes	3,983	3,983	3,983	3,983
Common stock issuable under the 2024 Notes	—	3,970	3,970	3,970
Unvested RSUs	3,360	3,411	4,029	3,411
Common stock potentially issuable for ESPP purchases	222	407	453	407
Common stock held by the NQDC	—	208	205	208
Total number of potentially issuable shares	13,394	23,479	20,028	23,479

The potential effect of the capped call transactions with respect to the 2020 Notes was excluded from the diluted net loss per share as of September 30, 2019 as the Company’s closing stock price on September 30, 2019 did not exceed the conversion price of $94.15 per share. Although the Company’s stock price on September 28, 2018 (the last trading day before September 30, 2018) exceeded the conversion price, the potential effect of the capped call transactions and potential shares issuable under the Company’s 0.75% senior subordinated convertible notes due in 2018 and the 2020 Notes were excluded from the calculation of diluted loss per share in the three and nine months ended September 30, 2018 as they were anti-dilutive using the if-converted method. There is no similar capped call transaction associated with the 2024 Notes. See Note 12 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for additional information related to the Company’s convertible debt and capped call transaction.