Basic and Diluted Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

Basic and Diluted Net Income (Loss) Per Share

19.Basic and Diluted Net Income (Loss) Per Share

The Company computes basic net income (loss) per share by dividing net income available or loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution of securities that could be exercised or converted into common shares, and is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding plus the effect of potentially dilutive shares to purchase common stock.

The following table sets forth the computation of the Company’s basic and diluted net income available (loss attributable) per share to common stockholders for the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

	Year Ended December 31,
	2016		2015		2014
Numerator:
Net income available (loss attributable) to common stockholders	$	17,986	$	13,080	$	(28,883	)
Denominator:
Shares used in computing net income available (loss attributable) per share to common stockholders, basic		108,190		106,088		83,446
Weighted-average effect of potentially dilutive shares to purchase common stock		4,348		3,770		—
Shares used in computing net income available (loss attributable) per share to common stockholders, diluted		112,538		109,858		83,446
Net income available (loss attributable) per share to common stockholders:
Basic	$	0.17	$	0.12	$	(0.35	)
Diluted	$	0.16	$	0.12	$	(0.35	)

In May 2016, the Company modified the unvested performance stock options to vest annually over three years with the first vesting date occurring in May 2017. See Note 15—Equity Compensation Plans. As such, all stock options were considered in the computation of diluted net income (loss) per share on a weighted-average basis as of December 31, 2016. As of December 31, 2015, stock-based awards for 3.3 million underlying shares of common stock were subject to performance conditions that had not yet been met. Accordingly, these performance-based stock awards were not included in the computation of diluted net income per share for the year ended December 31, 2015. In addition, options remaining to be granted under the LTIP Pools were not included in the computation of diluted net income per share as these shares had not been granted as of December 31, 2016 and 2015. For the years ended December 31, 2016 and 2015, 0.3 million and a de minimis number of shares were excluded from the dilutive share calculations as the effect on net income per share would have been antidilutive.

For the year ended December 31, 2014, the Company incurred net losses attributable to common stockholders. As such, the potentially dilutive shares were anti-dilutive and were not considered in the weighted-average number of common shares outstanding for that period.