Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2015

Net Income (Loss) Per Share

Net Income (Loss) Per Share

14. Net Income (Loss) Per Share

In the calculation of basic net income per share, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income, if any. We calculate basic net income per share under the two‑class method. Diluted net income (loss) per share is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented. The computation of diluted net income (loss) per share reflects the potential dilution that could occur if all outstanding awards under our LTIP were converted into common shares or resulted in the issuance of common shares that would then share in the earnings of the Company. During periods in which the Company realizes a loss from continuing operations securities would not be dilutive to net loss per share and conversion into common shares is assumed not to occur.

Basic net income (loss) per share is computed as (i) net income (loss), (ii) less income allocable to participating securities (iii) divided by weighted average basic shares outstanding. The Company’s diluted net income (loss) per share is computed as (i) basic net income (loss), (ii) plus diluted adjustments to income allocable to participating securities (iii) divided by weighted average diluted shares outstanding.

	Years Ended December 31,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Net income (loss)	$	(69,836)	$	279,370	$	(91,044)
Basic income allocable to participating securities(1)		—		(3,286)		—
Basic net income (loss) allocable to common shareholders		(69,836)		276,084		(91,044)
Diluted adjustments to income allocable to participating securities(1)		—		58		—
Diluted net income (loss) allocable to common shareholders	$	(69,836)	$	276,142	$	(91,044)
Denominator:
Weighted average number of shares outstanding:
Basic		382,610		379,195		376,819
Restricted stock awards and units(1)(2)		—		6,924		—
Diluted		382,610		386,119		376,819
Net income (loss) per share:
Basic	$	(0.18)	$	0.73	$	(0.24)
Diluted	$	(0.18)	$	0.72	$	(0.24)

(1) Our service vesting restricted stock awards represent participating securities because they participate in non-forfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses because they are not contractually obligated to do so and, therefore, are excluded from the basic net income (loss) per common share calculation in periods we are in a net loss position.

(2) For the years ended December 31, 2015,  2014 and 2013, we excluded 11.2 million, 4.4 million and 13.9 million outstanding restricted stock awards and restricted stock units, respectively, from the computations of diluted net income per share because the effect would have been anti‑dilutive.