NET INCOME PER SHARE (Notes)

12 Months Ended

Dec. 31, 2020

NET INCOME (LOSS) PER SHARE

Net income (loss) per common share is presented for both Basic EPS and Diluted EPS. Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and common shares equivalents outstanding during the period.

The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of our common stock for the relevant periods, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to our employees that vest based on performance conditions, market conditions, or a combination of performance and market conditions.

When there is a loss from continuing operations, potential common shares should not be included in the computation of Diluted EPS because the exercise or conversion of any potential shares increases the number of shares in the denominator and results in a lower loss per share. Therefore, all outstanding stock options and restricted stock units at December 31, 2018 are anti-dilutive and not included in the EPS calculation.

The following table sets forth (in thousands) common shares considered anti-dilutive securities at December 31, 2020, 2019 and 2018.



	December 31, 2020	December 31, 2019	December 31, 2018
Options	4	565	892
Non-vested restricted stock units	737	2,642	2,945
Anti-dilutive potential common shares	741	3,207	3,837

The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding at December 31, 2020, 2019, and 2018:


	2020	2019	2018
Weighted common shares outstanding - basic	43,822	42,649	41,662
Net effect of common stock equivalents	1,056	846	—
Weighted common shares outstanding - diluted	44,878	43,495	41,662

On June 15, 2015, we issued $125.0 million aggregate principal amount of our 2.00% convertible senior notes due 2020 (the “Notes”) in an offering conducted in accordance with Rule 144A under the Securities Act of 1933. The Notes were convertible into cash, shares of our common stock, or a combination of cash and shares of common stock, at our election, based on an initial conversion rate, subject to adjustment. In connection with the offering of the Notes, we entered into a capped call transaction with a third party (the “Capped Call”) (see Note Q, Long-Term Debt and Credit Agreement). We use the treasury stock method in computing the dilutive impact of the Notes. The Notes are convertible into shares but our stock price was less than the conversion price at December 31, 2019 and 2018, and therefore, the Notes are excluded from diluted income per share. The Capped Call is

not reflected in diluted net income (loss) per share as it will always be anti-dilutive. The Notes were fully paid on June 15, 2020 when they came due.