NET INCOME (LOSS) PER COMMON SHARE

6 Months Ended

Jun. 30, 2020

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 Employee Share Purchase Plan (ESPP), unvested RSUs, common stock held by the NQDC 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 June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:


Net Income (Loss), basic and diluted	$	(29,183)	$	(37,435)	$	52,198	$	(93,908)
Denominator:
Weighted-average common shares outstanding, basic	180,729		179,048		180,314		178,662
Effect of dilutive securities:
Options to purchase common stock	—		—		1,770		—

Unvested RSUs	—		—		1,733		—
Common stock potentially issuable for ESPP purchases	—		—		317		—
Common shares held by the NQDC	—		—		210		—
Weighted-average common shares outstanding, diluted	180,729		179,048		184,344		178,662
Net Income (Loss) per common share, basic	$	(0.16)	$	(0.21)	0.29		(0.53)
Net Income (Loss) per common share, diluted	$	(0.16)	$	(0.21)	0.28		(0.53)

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 (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2020	2019	2020	2019
Options to purchase common stock	7,157	7,494	5,386	7,494
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	3,970
Common stock issuable under the 2027 Notes	4,365	—	4,365	—
Unvested RSUs	4,832	4,108	3,099	4,108
Common stock potentially issuable for ESPP purchases	574	482	257	482
Common stock held by the NQDC	210	211	—	211
Total number of potentially issuable shares	25,091	20,248	21,060	20,248

Although the Company’s stock price on June 30, 2020 exceeded the conversion price of $94.15 per share, the potential effect of the capped call transactions and potential shares issuable under the 2020 Notes were excluded from the calculation of diluted loss per share in the three and six months ended June 30, 2020 as they were anti-dilutive using the if-converted method. The potential effect of the capped call transactions with respect to the 2020 Notes was excluded from the diluted net income (loss) per share as of June 30, 2019 as the Company’s closing stock price on June 30, 2019 did not exceed the conversion price. There is no similar capped call transaction associated with the 2024 Notes or the 2027 Notes.

See Note 12 – Debt for additional information on the 2027 Notes.

See Note 13 - Debt to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information related to the 2020 Notes and 2024 Notes and capped call transaction.