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NET INCOME PER SHARE
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
NET INCOME PER SHARE
NET INCOME PER SHARE
Basic and diluted net income per share was as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(In thousands, except per share amounts)
Basic net income per share:
 
 
 
 
 
 
 
Net income from continuing operations
$
12,755

 
$
12,020

 
$
26,173

 
$
23,752

Net loss from discontinued operations
—

 
(7,022
)
 
—

 
(10,370
)
Net income
$
12,755

 
$
4,998

 
$
26,173

 
$
13,382

 
 
 
 
 
 
 
 
Weighted average common shares outstanding
37,196

 
33,032

 
37,037

 
32,884

 
 
 
 
 
 
 
 
Basic net income per common share from continuing operations
$
0.34

 
$
0.36

 
$
0.71

 
$
0.72

Basic net loss per common share from discontinued operations
—

 
(0.21
)
 
—

 
(0.32
)
Basic net income per common share
$
0.34

 
$
0.15

 
$
0.71

 
$
0.40

 
 
 
 
 
 
 
 
Diluted net income per share:
 
 
 
 
 
 
 
Net income from continuing operations
$
12,755

 
$
12,020

 
$
26,173

 
$
23,752

Net loss from discontinued operations
—

 
(7,022
)
 
—

 
(10,370
)
Net income
$
12,755

 
$
4,998

 
$
26,173

 
$
13,382

 
 
 
 
 
 
 
 
Weighted average common shares outstanding — Basic
37,196

 
33,032

 
37,037

 
32,884

Effect of dilutive securities:
 
 
 
 
 
 
 
2016 Convertible notes and warrants
1,598

 
477

 
1,125

 
268

Stock options and restricted stock
561

 
430

 
609

 
492

Weighted average common shares for diluted earnings per share
39,355

 
33,939

 
38,771

 
33,644

 
 
 
 
 
 
 
 
Diluted net income per common share from continuing operations
$
0.32

 
$
0.35

 
$
0.68

 
$
0.71

Diluted net loss per common share from discontinued operations
—

 
(0.21
)
 
—

 
(0.31
)
Diluted net income per common share
$
0.32

 
$
0.14

 
$
0.68

 
$
0.40



In connection with the separation of SeaSpine on July 1, 2015 and in accordance with the Employee Matters Agreement the Company made certain adjustments to the exercise price and number of share-based compensation awards with the intention of preserving the intrinsic value of the awards prior to the separation. Stock options issued in 2015 prior to the separation converted to those of the entity where the employee is working post-separation. Stock options issued prior to 2015 converted to both Integra and SeaSpine options such that the holders received stock options in both companies. The exercise price of these outstanding awards was adjusted to preserve the value of the awards immediately prior to the separation. Performance stock, restricted stock, and contract stock were adjusted to provide holders performance stock, restricted stock, and contract stock in the company that employs such employee following the separation.
Common stock of approximately 0.2 million and 0.1 million of shares at June 30, 2016 and 2015, respectively, that are issuable through exercise or conversion of dilutive securities were not included in the computation of diluted net income per share because their effect, would have been antidilutive.

For the three and six months ended June 30, 2016 and 2015, the potential excess conversion value on the 2016 Notes and warrants were included in the Company's dilutive share calculation because the average stock price for the three and six months ended June 30, 2016 and 2015 exceeded the conversion price.

Restricted Units that entitle the holders to approximately 0.1 million shares of common stock are included in the diluted weighted average shares outstanding calculation.