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Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The Company presents both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss)” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if the 2028 Convertible Notes and 2025 Convertible Notes were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of the Company’s common stock. The potential dilution from conversion of the 2028 Convertible Notes and 2025 Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of the Company’s common stock issuable upon conversion of the 2028 Convertible Notes and the 2025 Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the 2028 Convertible Notes and the 2025 Convertible Notes at the beginning of the reporting period (or at time of issuance, if later).
The following table shows the calculations (in thousands, except net income (loss) per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Adjustment to net income (loss) for convertible notes in diluted EPS (1)
NET INCOME (LOSS)$75,873 $(6,824)$53,759 $(13,802)
Convertible note accretion, amortization, and interest, net of tax1,552 — 2,997 — 
NET INCOME (LOSS) USED IN DILUTED EPS77,425 (6,824)56,756 (13,802)
Basic weighted average shares outstanding118,287 107,887 117,249 106,209 
Dilutive effect of stock options2,027 — 2,221 — 
Dilutive effect of restricted stock awards170 — 196 — 
Dilutive effect of Convertible Notes due 20255,538 — 5,538 — 
Dilutive effect of Convertible Notes due 20285,215 — 5,043 — 
Diluted weighted average shares outstanding131,237 107,887 130,247 106,209 
Basic net income (loss) per share$0.64 $(0.06)$0.46 $(0.13)
Diluted net income (loss) per share$0.59 $(0.06)$0.44 $(0.13)

(1) This adjustment compensates for the effects of the if-converted impact of convertible notes in adjusted net income. Since an entity using the if-converted method assumes that a convertible debt instrument was converted into common shares at the beginning of the reporting period, net income (loss) is adjusted to reverse any recognized interest expense (including any amortization of discounts).

The following potential dilutive shares were excluded from the calculation of diluted net income (loss) per share because their effect would be anti-dilutive (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Stock options— 2,871 — 2,944 
Restricted stock awards— 281 — 237 
2025 Convertible Notes— 3,773 — 1,887 
2028 Convertible Notes— — — — 

The potential effect of the Capped Call Transactions entered into concurrently with the 2028 Convertible Notes were excluded from the calculation of diluted net income (loss) per share in the three and six ended June 30, 2021 as the Company’s closing price on June 30, 2021 did not exceed the conversion price of $85.75 per share. The Capped Call Transactions are not reflected in diluted net income (loss) per share as they are anti-dilutive.
For further details on the Capped Call Transactions, please refer to Note 8. Debt.