NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share was as follows:



	Years Ended December 31,
	2016		2015			2014
	(In thousands, except per share amounts)
Basic net income (loss) per share:
Net income from continuing operations	$	74,564	$	6,851		$	36,295
Net loss from discontinued operations	—		(10,370		)	(2,291		)
Net income (loss)	$	74,564	$	(3,519	)	$	34,004

Weighted average common shares outstanding	74,386		68,990			64,864

Basic net income per common share from continuing operations	$	1.00	$	0.10		$	0.56
Basic net loss per common share from discontinued operations	—		(0.15		)	(0.04		)
Basic net income (loss) per common share	$	1.00	$	(0.05	)	$	0.52

Diluted net income (loss) per share:
Net income from continuing operations	$	74,564	$	6,851		$	36,295
Net loss from discontinued operations	—		(10,370		)	(2,291		)
Net income (loss)	$	74,564	$	(3,519	)	$	34,004

Weighted average common shares outstanding — Basic	74,386		68,990			64,864
Effect of dilutive securities:
2016 Convertible notes and related warrants	3,462		922			—
Stock options and restricted stock	1,346		1,442			1,056
Weighted average common shares for diluted earnings per share	79,194		71,354			65,920


Diluted net income per common share from continuing operations	$	0.94	$	0.10		$	0.55
Diluted net loss per common share from discontinued operations	—		(0.15		)	(0.03		)
Diluted net income (loss) per common share	$	0.94	$	(0.05	)	$	0.52

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. The adjustments to the Company's stock-based compensation awards resulted in an increase in incremental fair value of $4.4 million, of which $0.7 million and $3.3 million were recorded during the year-ended December 31, 2016 and 2015, respectively. The remaining $0.4 million will be recognized prospectively over the remaining term of outstanding awards, adjusted, as applicable, for forfeitures.

Common stock of approximately 0.2 million, 0.2 million and 0.4 million shares at December 31, 2016, 2015 and 2014, 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 year-ended December 31, 2015 and for the period from January 1, 2016 to December 15, 2016, the date of 2016 Convertible Notes settlement, the potential excess conversion value on the 2016 Convertible Notes was included in the Company's dilutive share calculation because the average stock price for period outstanding exceeded the conversion price. On December 15, 2016, the Company settled the 2016 Convertible Notes and issued 2.9 million shares of common stock related to the conversion premium of 2016 Convertible Notes. The Company also exercised the call option with hedge participants and received 2.9 million shares of common stock. See Note 5 for additional information related to our 2016 Convertible Notes.

For the year-ended December 31, 2015, the potential excess conversion value on the 2016 Convertible Notes was included in the Company's dilutive share calculation because the average stock price for the year-ended December 31, 2015 exceeded the conversion price.

For the year-ended December 31, 2014, the potential excess conversion value of the 2016 Convertible Notes were anti-dilutive because the conversion price exceeded the Company's stock price; therefore, these amounts have been excluded from the diluted earnings per share calculation.

The Company also has warrants outstanding related to its 2016 Convertible Notes at December 31, 2016, 2015 and 2014 and the Company's 2016 Convertible Notes are convertible to common shares in certain circumstances (see Note 5). These warrants and the excess conversion value of the 2016 Convertible Notes are included in the diluted earnings per share calculation using the treasury stock method, unless the effect of including such items would be anti-dilutive.

Performance Shares and Restricted Units that entitle the holders to approximately 0.6 million shares of common stock are included in the basic and diluted weighted average shares outstanding calculation from their date of issuance because no further consideration is due related to the issuance of the underlying common shares.