Note 3 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common shares by the sum of the weighted average number of common shares outstanding and the weighted average number of dilutive potential common shares. Dilutive potential common shares relate to our stock-based compensation arrangements and our outstanding convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations.

The calculation of the basic and diluted net income per share was as follows:



	Year Ended December 31,
	2016		2015		2014
(In thousands, except per-share amounts)
Net income from continuing operations:
Net income from continuing operations—basic	$	308,253	$	281,539	$	1,259,574
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	5,816		14,758		14,372
Net income from continuing operations—diluted	$	314,069	$	296,297	$	1,273,946

Net income:
Net income from continuing operations—basic	$	308,253	$	281,539	$	1,259,574
Income (loss) from discontinued operations, net of tax	—		5,385		(300,057		)
Net income—basic	308,253		286,924		959,517
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	5,816		14,758		14,372
Net income—diluted	$	314,069	$	301,682	$	973,889

Average common shares outstanding—basic	211,789		199,910		184,551
Dilutive effect of Convertible Senior Notes due 2017 (2)	207		6,293		8,465
Dilutive effect of Convertible Senior Notes due 2019	14,263		37,736		37,736
Dilutive effect of stock-based compensation arrangements (2)	2,999		2,393		3,150
Adjusted average common shares outstanding—diluted	229,258		246,332		233,902

Net income per share:

Basic:
Net income from continuing operations	$	1.46	$	1.41	$	6.83
Income (loss) from discontinued operations, net of tax	—		0.03		(1.63		)
Net income	$	1.46	$	1.44	$	5.20

Diluted:
Net income from continuing operations	$	1.37	$	1.20	$	5.44
Income (loss) from discontinued operations, net of tax	—		0.02		(1.28		)
Net income	$	1.37	$	1.22	$	4.16

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(1)	As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion.


(2)	The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements and convertible debt, if any, were not included in the calculation of diluted net income per share because they were anti-dilutive:



	Year Ended December 31,
(in thousands)	2016	2015	2014
Shares of common stock equivalents	1,042	728	542