Earnings Per Share

6 Months Ended

Jun. 30, 2017

Basic net income (loss) per share attributable to Vertex common shareholders is based upon the weighted-average number of common shares outstanding during the period, excluding restricted stock and restricted stock units that have been issued but are not yet vested. Diluted net income (loss) per share attributable to Vertex common shareholders is based upon the weighted-average number of common shares outstanding during the period plus additional weighted-average common equivalent shares outstanding during the period when the effect is dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share for the periods ended:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands, except per share amounts)
Basic net income (loss) attributable to Vertex per common share calculation:
Net income (loss) attributable to Vertex common shareholders	$	17,996		$	(64,525	)	$	265,752		$	(106,156	)
Less: Undistributed earnings allocated to participating securities	(23		)	—			(387		)	—
Net income (loss) attributable to Vertex common shareholders—basic	$	17,973		$	(64,525	)	$	265,365		$	(106,156	)

Basic weighted-average common shares outstanding	247,521			244,482			246,782			244,124
Basic net income (loss) attributable to Vertex per common share	$	0.07		$	(0.26	)	$	1.08		$	(0.43	)

Diluted net income (loss) attributable to Vertex per common share calculation:
Net income (loss) attributable to Vertex common shareholders	$	17,996		$	(64,525	)	$	265,752		$	(106,156	)
Less: Undistributed earnings allocated to participating securities	(23		)	—			(382		)	—
Net income (loss) attributable to Vertex common shareholders—diluted	$	17,973		$	(64,525	)	$	265,370		$	(106,156	)

Weighted-average shares used to compute basic net income (loss) per common share	247,521			244,482			246,782			244,124
Effect of potentially dilutive securities:
Stock options	2,787			—			2,407			—
Restricted stock and restricted stock units	1,264			—			958			—
Other	63			—			52			—
Weighted-average shares used to compute diluted net income (loss) per common share	251,635			244,482			250,199			244,124
Diluted net income (loss) attributable to Vertex per common share	$	0.07		$	(0.26	)	$	1.06		$	(0.43	)

The Company did not include the securities in the following table in the computation of the dilutive net income (loss) per share attributable to Vertex common shareholders calculations because the effect would have been anti-dilutive during each period:



	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
	(in thousands)
Stock options	3,112	12,231	7,065	12,231
Unvested restricted stock and restricted stock units	6	3,506	32	3,506