Net (Loss) Income Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

NET (LOSS) INCOME PER SHARE

NOTE 16. NET (LOSS) INCOME PER SHARE

The following is a reconciliation of the numerator and denominator of basic and diluted net (loss) income per share for the three and six months ended June 30, 2017 and 2016 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Numerator:
(Loss) income from continuing operations	$	(696,020	)	$	389,812		$	(861,443	)	$	301,049
Less: Net income from continuing operations attributable to noncontrolling interests	—			18			—			16
(Loss) income from continuing operations attributable to Endo International plc ordinary shareholders	$	(696,020	)	$	389,794		$	(861,443	)	$	301,033
Loss from discontinued operations attributable to Endo International plc ordinary shareholders, net of tax	(700,498		)	(46,216		)	(708,903		)	(91,324		)
Net (loss) income attributable to Endo International plc ordinary shareholders	$	(1,396,518	)	$	343,578		$	(1,570,346	)	$	209,709
Denominator:
For basic per share data—weighted average shares	223,158			222,667			223,086			222,485
Dilutive effect of ordinary share equivalents	—			195			—			535
Dilutive effect of various convertible notes and warrants	—			1			—			1
For diluted per share data—weighted average shares	223,158			222,863			223,086			223,021

Basic net (loss) income per share data is computed based on the weighted average number of ordinary shares outstanding during the period. Diluted (loss) income per share data is computed based on the weighted average number of ordinary shares outstanding and, if there is net income from continuing operations attributable to Endo ordinary shareholders during the period, the dilutive impact of ordinary share equivalents outstanding during the period. Ordinary share equivalents are measured under the treasury stock method.

Due to the Company’s adoption of ASU 2016-09, effective January 1, 2017, the Company will no longer consider excess tax benefits resulting from share-based compensation awards when applying the treasury stock method to calculate diluted weighted average shares outstanding. Therefore, the adoption of this ASU will have the effect of increasing dilution in periods where there is net income from continuing operations attributable to Endo ordinary shareholders and there are weighted average dilutive awards outstanding.

All stock options and stock awards were excluded from the diluted share calculation for the three and six months ended June 30, 2017 because their effect would have been anti-dilutive, as the Company was in a loss position. During the three and six months ended June 30, 2016, aggregate stock options and stock awards of 5.9 million and 4.7 million, respectively, were excluded from the diluted share calculation because their effect would have been anti-dilutive.