LOSS) PER SHARE OF CLASS A AND CLASS B COMMON STOCK

The Company computes net income (loss) per share of Class A and Class B common stock using the two-class method. Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and the effect of potentially dilutive equity awards outstanding during the period. Potentially dilutive securities consist of stock options, restricted stock units, unvested restricted stock awards, performance share units and ESPP shares. The dilutive effect of these equity awards is reflected in diluted net income (loss) per share by application of the treasury stock method. The computation of the diluted net income (loss) per share of Class A common stock assumes the conversion of Class B common stock, if dilutive, while the diluted net income (loss) per share of Class B common stock does not assume the conversion of those shares.

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. Under the two-class method, the undistributed earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the Company assumes the conversion of Class B common stock, if dilutive, in the computation of the diluted net income (loss) per share of Class A common stock, the undistributed earnings are equal to net income (loss) for that computation.

The following table sets forth the computation of basic and diluted net income (loss) per share of Class A and Class B common stock for the three months ended March 31, 2016 and 2015 (in thousands, except share amounts and per share amounts):



	Three Months Ended March 31,
	2016						2015
	Class A			Class B			Class A			Class B
Basic net income (loss) per share:
Numerator
Allocation of net income (loss) - continuing operations	$	(45,408	)	$	(188	)	$	(16,681	)	$	(58	)
Less: Allocation of net income (loss) attributable to noncontrolling interests	3,508			15			3,804			14
Allocation of net income (loss) attributable to common stockholders - continuing operations	$	(48,916	)	$	(203	)	$	(20,485	)	$	(72	)
Allocation of net income (loss) attributable to common stockholders - discontinued operations	—			—			6,261			23
Allocation of net income (loss) attributable to common stockholders	$	(48,916	)	$	(203	)	$	(14,224	)	$	(49	)
Denominator
Weighted-average common shares outstanding	580,351,702			2,399,976			673,982,961			2,399,976
Basic net income (loss) per share:
Continuing operations	$	(0.08	)	$	(0.08	)	$	(0.03	)	$	(0.03	)
Discontinued operations	—			—			0.01			0.01
Basic net income (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.02	)	$	(0.02	)

Diluted net income (loss) per share:
Numerator
Allocation of net income (loss) attributable to common stockholders for basic computation - continuing operations	$	(48,916	)	$	(203	)	$	(20,485	)	$	(72	)
Reallocation of net income (loss) attributable to common stockholders as a result of conversion of Class B ⁽¹⁾	—			—			—			—
Allocation of net income (loss) attributable to common stockholders - continuing operations	$	(48,916	)	$	(203	)	$	(20,485	)	$	(72	)
Allocation of net income (loss) attributable to common stockholders for basic computation - discontinued operations	$	—		$	—		$	6,261		$	23
Reallocation of net income (loss) attributable to common stockholders as a result of conversion of Class B ⁽¹⁾	—			—			—			—
Allocation of net income (loss) attributable to common stockholders - discontinued operations	—			—			6,261			23
Allocation of net income (loss) attributable to common stockholders	$	(48,916	)	$	(203	)	$	(14,224	)	$	(49	)
Denominator
Weighted-average common shares outstanding used in basic computation	580,351,702			2,399,976			673,982,961			2,399,976
Conversion of Class B ⁽¹⁾	—			—			—			—
Employee stock options ⁽¹⁾	—			—			—			—
Restricted shares and RSUs ⁽¹⁾	—			—			—			—
Weighted-average diluted shares outstanding ⁽¹⁾	580,351,702			2,399,976			673,982,961			2,399,976
Diluted net income (loss) per share:
Continuing operations	$	(0.08	)	$	(0.08	)	$	(0.03	)	$	(0.03	)
Discontinued operations	—			—			0.01			0.01
Diluted net income (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.02	)	$	(0.02	)


(1)	Conversion of Class B shares into Class A shares and outstanding equity awards have not been reflected in the diluted income (loss) per share calculation for the three months ended March 31, 2016 and 2015 because the effect on net income (loss) per share from continuing operations would be antidilutive.

The following weighted-average outstanding equity awards are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share from continuing operations:



	Three Months Ended March 31,
	2016	2015
Stock options	1,464,283	2,135,535
Restricted stock units	38,260,649	38,057,394
Restricted stock	1,693,312	580,796
ESPP shares	1,412,199	621,237
Total	42,830,443	41,394,962

In addition to the antidilutive awards as set forth in the table above, the Company also granted approximately 128,337 performance share units to certain key employees during the three months ended March 31, 2016. Contingently issuable shares are excluded from the computation of diluted earnings per share if, based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. These outstanding performance share units have been excluded from the table above for the three months ended March 31, 2016 as the performance conditions were not satisfied as of the end of the period.