NET INCOME LOSS PER SHARE

9 Months Ended

Sep. 30, 2020

Earnings Per Share, Policy [Policy Text Block]

16. NET INCOME (LOSS) PER SHARE

Our Series A preferred stock, Series A-1 preferred stock, and Series B preferred stock (collectively, the "preferred shares") are considered participating securities, and as a result, net income (loss) per share is calculated using the two-class method. Under this method, we give effect to preferred dividends and then allocate remaining net income (loss) attributable to our stockholders to both common shares and participating securities (based on the percentages outstanding) in determining net income (loss) per common share.

Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common shares (after allocating between common shares and participating securities) by the weighted average number of common shares outstanding during the period.

Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common shares (after allocating between common shares and participating securities) by the weighted average number of common and potential common shares outstanding during the period (after allocating total dilutive shares between our common shares outstanding and our preferred shares outstanding). Potential common shares, comprising incremental common shares issuable upon the exercise of stock options, warrants, and restricted stock awards are included in the calculation of diluted net income (loss) per common share to the extent such shares are dilutive. Net income (loss) attributable to common shares is adjusted for options and restricted stock awards issued by our subsidiaries when the effect of our subsidiary's diluted earnings per share is dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data):



	Three months ended September 30,					Nine months ended September 30,
	2020		2019			2020		2019
Numerator:
Net income (loss) attributable to stockholders of Overstock.com, Inc.	$	23,391	$	(30,938	)	$	43,414	$	(94,863	)
Less: Preferred stock TZROP repurchase loss	—		—			—		(425		)
Less: Preferred stock dividends - declared and accumulated	179		837			376		875
Undistributed income (loss)	23,212		(31,775		)	43,038		(95,313		)
Less: Undistributed income (loss) allocated to participating securities	2,293		(428		)	2,482		(1,319		)
Net income (loss) attributable to common stockholders	$	20,919	$	(31,347	)	$	40,556	$	(93,994	)
Denominator:
Weighted average shares of common stock outstanding—basic	41,595		35,241			40,697		34,289
Effect of dilutive securities:
Stock options and restricted stock awards	607		—			333		—
Weighted average shares of common stock outstanding—diluted	42,202		35,241			41,030		34,289
Net income (loss) per share of common stock:
Basic	$	0.50	$	(0.89	)	$	1.00	$	(2.74	)
Diluted	$	0.50	$	(0.89	)	$	0.99	$	(2.74	)

The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):



	Three months ended September 30,		Nine months ended September 30,
	2020	2019	2020	2019
Stock options and restricted stock units	4	1,088	302	1,088