NET INCOME (LOSS) PER SHARE

Basic and diluted net income per share was as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016		2015
	(In thousands, except per share amounts)
Basic net income (loss) per share:
Net income (loss) from continuing operations	$	20,144	$	(31,881	)	$	46,316	$	(8,129	)
Net loss from discontinued operations	—		—			—		(10,370		)
Net income (loss)	$	20,144	$	(31,881	)	$	46,316	$	(18,499	)

Weighted average common shares outstanding	37,267		35,279			37,143		33,682

Basic net income (loss) per common share from continuing operations	$	0.54	$	(0.90	)	$	1.25	$	(0.24	)
Basic net loss per common share from discontinued operations	—		—			—		(0.31		)
Basic net income (loss) per common share	$	0.54	$	(0.90	)	$	1.25	$	(0.55	)

Diluted net income (loss) per share:
Net income (loss) from continuing operations	$	20,144	$	(31,881	)	$	46,316	$	(8,129	)
Net loss from discontinued operations	—		—			—		(10,370		)
Net income (loss)	$	20,144	$	(31,881	)	$	46,316	$	(18,499	)

Weighted average common shares outstanding — Basic	37,267		35,279			37,143		33,682
Effect of dilutive securities:
2016 Convertible notes and warrants	2,594		—			1,615		—
Stock options and restricted stock	655		—			644		—
Weighted average common shares for diluted earnings per share	40,516		35,279			39,402		33,682

Diluted net income (loss) per common share from continuing operations	$	0.50	$	(0.90	)	$	1.18	$	(0.24	)
Diluted net loss per common share from discontinued operations	—		—			—		(0.31		)
Diluted net income (loss) per common share	$	0.50	$	(0.90	)	$	1.18	$	(0.55	)

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 was 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 0.1 million and 0.6 million of shares at September 30, 2016 and 2015, respectively, that are issuable through exercise 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 nine months ended September 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 nine months ended September 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.