NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is presented in conformity with the two-class method required for participating securities. Participating securities include restricted stock units ("RSUs").

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.

For the convertible senior notes, the Company’s current intent and policy is to settle conversions using cash for the principal amount of convertible senior notes converted, with the remaining value satisfied at the Company’s option in cash, stock or a combination of cash and stock. Therefore, the dilutive effect of the convertible senior notes is limited to the conversion premium.

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



	Three Months Ended June 30, 2018	Three Months Ended June 30, 2017	Six Months Ended June 30, 2018	Six Months Ended June 30, 2017
Stock appreciation rights	347	1,297,282	240,303	1,446,618
2019 Convertible Senior Notes	4,358,629	5,567,112	5,178,146	5,567,112
2036 Convertible Senior Notes	10,087,669	14,106,725	11,574,051	14,106,725
Total	14,446,645	20,971,119	16,992,500	21,120,455

The following table presents the calculation of diluted net income (loss) per share:



	Three Months Ended June 30, 2018		Three Months Ended June 30, 2017			Six Months Ended June 30, 2018		Six Months Ended June 30, 2017
Net income (loss) attributable to the Company’s common stockholders - Basic	$	32,956	$	(34,809	)	$	241,983	$	(50,723	)
Less: effect of participating securities	—		—			—		—
Net income (loss) attributable to common stockholders - Dilutive	$	32,956	$	(34,809	)	$	241,983	$	(50,723	)
Shares:
Weighted-average shares used to compute basic net income per share	37,413,387		38,679,849			38,112,531		38,639,672
Adjustment to reflect conversion of convertible notes	4,333,570		—			2,377,998		—
Adjustment to reflect stock appreciation right conversions	332,987		—			222,585		—
Weighted-average shares used to compute diluted net income per share	42,079,944		38,679,849			40,713,114		38,639,672
Net income (loss) per share attributable to common stockholders:
Diluted	$	0.78	$	(0.90	)	$	5.94	$	(1.31	)