INCOME (LOSS) PER SHARE

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 include stock options, restricted stock units, performance share units, unvested restricted stock awards, ESPP shares, warrants and convertible senior notes. If dilutive, those potentially dilutive securities are reflected in diluted net income (loss) per share by application of the treasury stock method, except for the convertible senior notes, which are subject to the if-converted method.

Each share of the Company's Class A and Class B common stock automatically converted into a single class of common stock on October 31, 2016. Refer to Note 8, Stockholders’ Equity and Compensation Arrangements, for additional information. Prior to the conversion, the Company computed net income (loss) per share of Class A and Class B common stock using the two-class method. Under the two-class method, the undistributed earnings for each period were 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 were identical for Class A and Class B common shares, the undistributed earnings were allocated on a proportionate basis. Under the two-class method, the computation of diluted net income (loss) per share of Class A common stock would reflect the conversion of Class B common stock, if dilutive, while the computation of diluted net income (loss) per share of Class B common stock would not reflect the conversion of those shares.

The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the three and six months ended June 30, 2017 (in thousands, except share amounts and per share amounts):



	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017
Basic and diluted net income (loss) per share:
Numerator
Net income (loss) - continuing operations	$	(5,403	)	$	(26,272	)
Less: Net income (loss) attributable to noncontrolling interests	2,547			6,579
Net income (loss) attributable to common stockholders - continuing operations	$	(7,950	)	$	(32,851	)
Net income (loss) attributable to common stockholders - discontinued operations	(1,376		)	(889		)
Net income (loss) attributable to common stockholders	$	(9,326	)	$	(33,740	)
Denominator
Weighted-average common shares outstanding	559,762,180			560,978,712
Basic and diluted net income (loss) per share ⁽¹⁾:
Continuing operations	$	(0.01	)	$	(0.06	)
Discontinued operations	(0.01		)	—
Basic and diluted net income (loss) per share	$	(0.02	)	$	(0.06	)


(1)	The potentially dilutive impacts of outstanding equity awards, warrants and convertible senior notes have been excluded from the calculation of dilutive net income (loss) per share for the three and six months ended June 30, 2017 as their effect on net income (loss) per share from continuing operations was antidilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the three and six months ended June 30, 2016 (in thousands, except share amounts and per share amounts):



	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Class A			Class B			Class A			Class B
Basic and diluted net income (loss) per share:
Numerator
Allocation of net income (loss) - continuing operations	$	(48,565	)	$	(203	)	$	(91,923	)	$	(384	)
Less: Allocation of net income (loss) attributable to noncontrolling interests	3,160			13			6,668			28
Allocation of net income (loss) attributable to common stockholders - continuing operations	$	(51,725	)	$	(216	)	$	(98,591	)	$	(412	)
Allocation of net income (loss) attributable to common stockholders - discontinued operations	(2,951		)	(12		)	(4,999		)	(21		)
Allocation of net income (loss) attributable to common stockholders	$	(54,676	)	$	(228	)	$	(103,590	)	$	(433	)
Denominator							—			—
Weighted-average common shares outstanding	574,503,028			2,399,976			577,427,365			2,399,976
Basic and diluted net income (loss) per share ⁽¹⁾:
Continuing operations	$	(0.09	)	$	(0.09	)	$	(0.17	)	$	(0.17	)
Discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Basic and diluted net income (loss) per share	$	(0.10	)	$	(0.10	)	$	(0.18	)	$	(0.18	)


(1)	The potentially dilutive impacts of a conversion of Class B to Class A shares, outstanding equity awards, warrants and convertible senior notes have been excluded from the calculation of dilutive net income (loss) per share for the three and six months ended June 30, 2016 as their effect on net income (loss) per share from continuing operations was antidilutive.

The following weighted-average outstanding potentially-dilutive securities 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,
	2017	2016	2017	2016
Stock options	1,052,147	1,241,917	1,055,030	1,353,100
Restricted stock units	30,134,808	35,796,752	27,247,728	36,992,033
Restricted stock	1,219,018	1,219,018	1,219,018	1,456,165
ESPP shares	1,165,910	1,219,133	1,225,480	1,315,666
Performance share units	—	—	167,912	—
Convertible senior notes	46,296,300	44,261,298	46,296,300	22,130,649
Warrants	46,296,300	26,455,029	46,296,300	13,227,514
Total	126,164,483	110,193,147	123,507,768	76,475,127

In addition to the antidilutive securities as set forth in the table above, the Company had outstanding performance share units as of June 30, 2017 and 2016 that were eligible to vest into up to 2,505,346 and 778,092 shares of common stock, respectively, subject to the achievement of specified performance conditions. 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 six months ended June 30, 2017 and 2016 as the performance conditions were not satisfied as of the end of the period.