Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2017

NET INCOME (LOSS) PER SHARE

Basic net income per common share is presented in conformity with the two-class method required for participating securities. Participating securities include, or have included, Series A Preferred Stock, Series B Preferred Stock and RSU's.

Under the two-class method, net income is reduced for distributed and undistributed dividends earned in the current period. The remaining earnings are then allocated to Common Stock and the participating securities. The Company calculates the effects of participating securities on diluted earnings per share (EPS) using both the “if-converted or treasury stock” and "two-class" methods and discloses the method which results in a more dilutive effect. The effects of Common Stock options, warrants, stock appreciation rights and convertible notes on diluted EPS are calculated using the treasury stock method unless the effects are anti-dilutive to EPS.

The following potentially dilutive average number of securities were excluded from the calculation of diluted net income per share attributable to common stockholders during the periods presented as the effect was anti-dilutive:



	Year Ended December 31,
	2017	2016	2015
Options to purchase common stock	—	43,513	87,026
Stock appreciation rights	622,633	2,422,716	2,072,130
2019 Convertible notes	5,567,112	7,895,675	10,838,218
2036 Convertible notes	14,106,725	8,209,651	—
Total	20,296,470	18,571,555	12,997,374

The following table presents the calculation of diluted net income per share for the years ended December 31, 2017, 2016 and 2015 (in thousands, except share and per share data):



	2017			2016			2015
Net income (loss) attributable to the Company's common stockholders - Basic	$	(79,079	)	$	43,453		$	(151,392	)
Plus (less): effect of participating securities	—			874			—
Net income (loss) attributable to common stockholders	(79,079		)	44,327			(151,392		)
Less: effect of participating securities	—			(874		)	—
Net income (loss) attributable to the Company's common stockholders - Diluted	$	(79,079	)	$	43,453		$	(151,392	)
Shares:
Weighted-average shares outstanding - Basic	38,731,015			40,897,549			43,958,803
Adjustment to reflect stock appreciation right conversions	—			5,311			—
Weighted-average shares outstanding - Diluted	38,731,015			40,902,860			43,958,803

Net income (loss) per share attributable to common stockholders - Diluted	$	(2.04	)	$	1.06		$	(3.44	)