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Income (Loss) Per Share of Class A and Class B Common Stock
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
Income (Loss) Per Share of Class A and Class B Common Stock
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 securities outstanding during the period. Potentially dilutive securities consist of stock options, restricted stock units, unvested restricted stock awards, warrants, performance share units, ESPP shares and convertible senior notes. The dilutive effect of these securities is reflected in diluted net income (loss) per share by application of the treasury stock method or the if-converted 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 stock 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 and six months ended June 30, 2016 and 2015 (in thousands, except share amounts and per share amounts):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
 
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
Basic net income (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocation of net income (loss) - continuing operations
 
$
(51,516
)
 
$
(215
)
 
$
(15,211
)
 
$
(56
)
 
$
(96,924
)
 
$
(403
)
 
$
(31,892
)
 
$
(114
)
Less: Allocation of net income (loss) attributable to noncontrolling interests
 
3,160

 
13

 
2,818

 
10

 
6,668

 
28

 
6,622

 
24

Allocation of net income (loss) attributable to common stockholders - continuing operations
 
$
(54,676
)
 
$
(228
)
 
$
(18,029
)
 
$
(66
)
 
$
(103,592
)
 
$
(431
)
 
$
(38,514
)
 
$
(138
)
Allocation of net income (loss) attributable to common stockholders - discontinued operations
 
—

 
—

 
126,725

 
454

 
—

 
—

 
132,986

 
477

Allocation of net income (loss) attributable to common stockholders
 
$
(54,676
)
 
$
(228
)
 
$
108,696

 
$
388

 
$
(103,592
)
 
$
(431
)
 
$
94,472

 
$
339

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
574,503,028

 
2,399,976

 
669,230,193

 
2,399,976

 
577,427,365

 
2,399,976

 
671,606,577

 
2,399,976

Basic net income (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.10
)
 
$
(0.10
)
 
$
(0.03
)
 
$
(0.03
)
 
$
(0.18
)
 
$
(0.18
)
 
$
(0.06
)
 
$
(0.06
)
Discontinued operations
 
—

 
—

 
0.19

 
0.19

 
—

 
—

 
0.20

 
0.20

Basic net income (loss) per share
 
$
(0.10
)
 
$
(0.10
)
 
$
0.16

 
$
0.16

 
$
(0.18
)
 
$
(0.18
)
 
$
0.14

 
$
0.14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocation of net income (loss) attributable to common stockholders for basic computation - continuing operations
 
$
(54,676
)
 
$
(228
)
 
$
(18,029
)
 
$
(66
)
 
$
(103,592
)
 
$
(431
)
 
$
(38,514
)
 
$
(138
)
Reallocation of net income (loss) attributable to common stockholders as a result of conversion of Class B (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Plus: Interest expense on convertible senior notes, net of tax (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Allocation of net income (loss) attributable to common stockholders - continuing operations
 
$
(54,676
)
 
$
(228
)
 
$
(18,029
)
 
$
(66
)
 
$
(103,592
)
 
$
(431
)
 
$
(38,514
)
 
$
(138
)
Allocation of net income (loss) attributable to common stockholders for basic computation - discontinued operations
 
$
—

 
$
—

 
$
126,725

 
$
454

 
$
—

 
$
—

 
$
132,986

 
$
477

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
 
—

 
—

 
126,725

 
454

 
—

 
—

 
132,986

 
477

Allocation of net income (loss) attributable to common stockholders
 
$
(54,676
)
 
$
(228
)
 
$
108,696

 
$
388

 
$
(103,592
)
 
$
(431
)
 
$
94,472

 
$
339

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding used in basic computation
 
574,503,028

 
2,399,976

 
669,230,193

 
2,399,976

 
577,427,365

 
2,399,976

 
671,606,577

 
2,399,976

Conversion of
Class B (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Employee stock options (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Restricted shares and RSUs (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Convertible senior notes (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Warrants (1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Weighted-average diluted shares outstanding (1)
 
574,503,028

 
2,399,976

 
669,230,193

 
2,399,976

 
577,427,365

 
2,399,976

 
671,606,577

 
2,399,976

Diluted net income (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.10
)
 
$
(0.10
)
 
$
(0.03
)
 
$
(0.03
)
 
$
(0.18
)
 
$
(0.18
)
 
$
(0.06
)
 
$
(0.06
)
Discontinued operations
 
—

 
—

 
0.19

 
0.19

 
—

 
—

 
0.20

 
0.20

Diluted net income (loss) per share
 
$
(0.10
)
 
$
(0.10
)
 
$
0.16

 
$
0.16

 
$
(0.18
)
 
$
(0.18
)
 
$
0.14

 
$
0.14


(1)
The impact of the conversion of Class B common stock into Class A common stock, outstanding equity awards and outstanding convertible senior notes and warrants have not been reflected in the diluted income (loss) per share calculation for the three and six months ended June 30, 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 June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Stock options
 
1,241,917

 
1,986,295

 
1,353,100

 
2,060,915

Restricted stock units
 
35,796,752

 
43,168,136

 
36,992,033

 
40,612,765

Restricted stock
 
1,219,018

 
1,005,543

 
1,456,165

 
793,170

ESPP shares
 
1,219,133

 
837,123

 
1,315,666

 
729,180

Convertible senior notes
 
44,261,298

 
—

 
22,130,649

 
—

Warrants
 
26,455,029

 
—

 
13,227,514

 
—

Total
 
110,193,147

 
46,997,097

 
76,475,127

 
44,196,030


In addition to the antidilutive awards as set forth in the table above, the Company also granted approximately 260,709 and 389,046 performance share units, respectively, to certain key employees during the three and six months ended June 30, 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 and six months ended June 30, 2016 as the performance conditions were not satisfied as of the end of the period.