Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2020

Basic Earnings Per Share ("EPS") is calculated by dividing net income or loss available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if options or other securities with features that could result in the issuance of common stock were exercised or converted to common stock. The following tables reconcile the numerator and the denominator of the basic and diluted net income (loss) per share computation (in thousands, except for per share data):



	Three months ended March 31,
	2020				2019
	Basic		Diluted		Basic			Diluted
Numerator:
Net income (loss) applicable to InterDigital, Inc.	$	116	$	116	$	(2,803	)	$	(2,803	)
Denominator:
Weighted-average shares outstanding: Basic	30,722		30,722		32,611			32,611
Dilutive effect of stock options, RSUs, convertible securities and warrants			198					—
Weighted-average shares outstanding: Diluted			30,920					32,611
Earnings Per Share:
Net income (loss) per common share: Basic	$	—	$	—	$	(0.09	)	$	(0.09	)
Dilutive effect of stock options, RSUs, convertible securities and warrants			—					—
Net income (loss) per common share: Diluted			$	—				$	(0.09	)

Shares of common stock issuable upon the exercise or conversion of certain securities have been excluded from our computation of EPS because the strike price or conversion rate, as applicable, of such securities was greater than the average market price of our common stock and, as a result, the effect of such exercise or conversion would have been anti-dilutive. Set forth below are the securities and the weighted average number of shares of common stock underlying such securities that were excluded from our computation of EPS for the periods presented (in thousands).



	Three months ended March 31,
	2020	2019
Restricted stock units and stock options	260	402
Convertible securities	6,268	4,440
Warrants	6,268	4,440
Total	12,796	9,282

Convertible Notes and Warrants

Refer to Note 8, "Long-Term Debt," for information about the Company's convertible notes and warrants and related conversion and strike prices. During periods in which the average market price of the Company's common stock is above the applicable conversion price of the Company's convertible notes, or above the strike price of our outstanding warrants, the impact of conversion or exercise, as applicable, would be dilutive and such dilutive effect is reflected in diluted EPS. As a result, in periods where the average market price of the Company's common stock is above the conversion price or strike price, as applicable, under the treasury stock method, the Company calculates the number of shares issuable under the terms of the convertible notes and the warrants based on the average market price of the stock during the period, and includes that number in the total diluted shares outstanding for the period.