Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2020

Basic and diluted net income (loss) per share was calculated as follows (in thousands, except per share data):


	For the three months ended September 30,				For the nine months ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	(14,434)	$	45,022	$	(2,050)	$	280,949
Denominator:
Weighted-average shares used to compute net income (loss) per share—basic	51,190		51,348		51,161		51,469
Dilutive restrictive stock awards	166		134		114		130
Weighted-average shares used to compute net income (loss) per share—diluted	51,356		51,482		51,275		51,599
Net income (loss) per share—basic	$	(0.28)	$	0.88	$	(0.04)	$	5.46
Net income (loss) per share—diluted	$	(0.28)	$	0.87	$	(0.04)	$	5.44

2017 Equity Plan

On February 13, 2020, the Company awarded 420,303 restricted stock unit awards under the Company's 2017 Equity Incentive Plan (the "2017 Equity Plan"). These awards have certain service-based, performance-based and market-based vesting conditions, as applicable. The service-based awards vest over a period of three years and the performance-based and market-based awards are based on the Company's performance in each of the three years. The Company recognized approximately $0.9 million and $2.4 million in stock compensation expense associated with these awards for the three and nine months ended September 30, 2020, respectively.

On April 24, 2020, the Company awarded 56,715 restricted stock unit awards under the Company's 2017 Equity Plan. These awards have service-based vesting conditions and vest over a period of three years. The Company recognized approximately $87.8 thousand and $151.7 thousand in stock compensation expense associated with these awards for the three and nine months ended September 30, 2020.

As of September 30, 2020, there were 281,588 restricted stock unit awards for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 80,845 and 42,314 share impact on dilutive weighted average shares for the three and nine months ended September 30, 2020, respectively. As of September 30, 2020, there were 447,295 restricted stock unit awards for which the performance-based and market-based vesting conditions were not met as of the measurement date and, as such, these awards were excluded from basic and diluted earnings per share. Based on the Company's closing share price on September 30,

2020, there were 87,822 restricted stock unit awards classified as a liability. The Company considered the impact on diluted earnings as if the award was settled in cash or in shares. These awards had a 44,252 and 35,492 share impact on dilutive weighted average shares for the three and nine months ended September 30, 2020, respectively.

As of September 30, 2020, there were 43,580 shares of the Company's common stock contingently issuable upon the settlement of a vested phantom unit award granted under our 2016 Equity Plan (as defined below) and 13,157 shares of its common stock contingently issuable upon the settlement of a vested restricted stock unit award under the 2017 Equity Plan. The settlement date for these awards is the earlier of a change in control as described in the 2016 Equity Plan or 2017 Equity Plan, as applicable, or five years from the grant date. These awards are vested and, as such, have been included in the weighted average shares used to compute basic and diluted net income (loss) per share.

2016 Equity Plan

As of September 30, 2020, there were 52,221 restricted stock unit awards granted under the Company's 2016 Equity Incentive Plan (the "2016 Equity Plan") to certain directors and employees, for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 41,640 and 35,662 share impact on dilutive weighted average shares for the three and nine months ended September 30, 2020, respectively.